Generally Accepted Accounting Principles Are

question 115

Multiple Choice

Generally accepted accounting principles are

• A) not used in the real world
• B) are required to make financial statement information relevant and faithfully represented
• C) are only used for internal reporting
• D) are only used by auditors
• E) are only used for reporting to Canada Revenue Agency

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Definitions:

Total Spending

The aggregate amount of money spent by households, businesses, and the government on goods and services within a certain period.

Invention

The conception of a new product or process combined with the first proof that it will work.

Innovation

The process and outcome of creating something new or improved, including products, services, processes, or business models, that adds value.

Marginal Cost

The expense for creating a supplementary unit of a product or service.