When Assessing General Purpose Financial Statements, the Financial Analyst Takes

question 14

Multiple Choice

When assessing general purpose financial statements, the financial analyst takes into consideration the fact that many important assets may not be included in the company's statement of financial position, such as human resource capital, intellectual property and social responsibility.This limitation is the result of applying which of the following characteristics of financial information?

• A)Entity concept
• B)Unit-of-measure assumption
• C)Going-concern assumption
• D)Periodic-reporting assumption

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Definitions:

Social Deviance

Behaviors or actions that violate the norms and expectations of a society or group.

Social Deviations

Are noncriminal departures from norms that are nonetheless subject to official control. Some members of the public regard them as being in some ways harmful, while other members of the public do not.

Sociological Definition

An explanation of a concept, phenomenon, or term from the perspective of sociology, which examines human society and social behavior.

Deviance

Behaviors or actions that violate societal norms, values, or standards, often leading to social disapproval or sanctions.