Can a System of Classification Violate More Than One Rule

question 39

Multiple Choice

Can a system of classification violate more than one rule?

• A)No, because there is only one rule.
• B)No, because violating one rule is incompatible with violating others.
• C)Yes, because a system that violates one rule will necessarily violate others.
• D)Yes, because it might be very poorly designed.
• E)Yes, because no classification system can follow all of the rules.

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Definitions:

Net Income

The end profit level of a company after all financial obligations, including taxes and expenses, are reduced from its income.

Post-Closing Trial Balance

A financial statement prepared after closing entries are made, listing all account balances to ensure debits equal credits.

Worksheet

A paper or digital document used to organize and plan out data or calculations, often used in accounting and finance.

Adjustments

At the conclusion of an accounting cycle, transactions recorded in financial documents to apportion revenues and costs to the true period of occurrence.