Under the New Format for Financial Statements Being Proposed Under

question 99

Multiple Choice

Under the new format for financial statements being proposed under a joint IASB/FASB project

• A) the amount of detail shown in the income statement would decrease compared to current presentations.
• B) companies would be required to report income statement line items by function only.
• C) financial statements would be presented consistent with the way management usually run companies.
• D) all financial statements would adopt headings similar to the current format of the statement of financial position balance sheet.

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Definitions:

John Locke

A 17th-century English philosopher known for his work on political philosophy and theory of knowledge.

Leviathan

Often refers to a large, powerful sea creature in biblical literature, or metaphorically to something very large and powerful.

State Of Nature

A concept in political philosophy regarding the hypothetical conditions of human beings before or without political association.

Social Contract

A theory or model that explains the legitimacy of the authority of the state over the individual.