What Answer Should Be Reported, with the Correct Number of Significant

question 17

Multiple Choice

What answer should be reported, with the correct number of significant figures, for the following calculation? (249.362 + 42) / 63.498

• A) 4.6
• B) 4.59
• C) 4.589
• D) 4.5885
• E) 4.58852

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Definitions:

GAAP

Generally Accepted Accounting Principles; refers to the framework of guidelines for financial accounting used in any given jurisdiction; commonly serves as the standard for financial reporting.

Compound Instruments

Financial instruments that contain both a liability and equity element, requiring separation for accounting purposes.

Liability

A financial obligation or debt owed by a company to another entity, payable in the future.

Legally Enforceable

Describes a contract or agreement that is binding under law and can be upheld in a court.