Which of the Following Is a Difference Between Personal Financial

question 2

Multiple Choice

Which of the following is a difference between personal financial statements and business financial statements?

• A) Personal financial statements follow the cost principle, whereas business financial statements do not follow the cost principle.
• B) Personal financial statements should present assets at estimated current values, whereas business financial statements should present assets at historical cost.
• C) Personal financial statements are not governed by GAAP, whereas business financial statements are governed by GAAP.
• D) Personal financial statements are prepared for a specific period of time, whereas business financial statements are prepared for a general period.

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Definitions:

Positive Emphasis

The act of focusing on the positive aspects of a situation or piece of information, often to encourage or motivate.

Process Audit

An examination and evaluation of an organization's various processes to assess their efficiency and effectiveness.

Inaccurate Figures

Data or numerical information that is incorrect or does not accurately reflect the true situation or measurement.

Bias-Free Language

Communication that avoids words or phrases that discriminate against specific groups or imply partiality.