Which of the Following Is Not True of Accounting Principles

question 43

Multiple Choice

Which of the following is not true of accounting principles?

• A) Financial accountants follow generally accepted accounting principles (GAAP).
• B) Following GAAP allows accounting information users to compare one company to another.
• C) A new accounting principle can be adopted with stockholders' approval.
• D) The Financial Accounting Standards Board (FASB) has primary responsibility for developing accounting principles.

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Definitions:

Age

The length of time that a person or object has existed.

Gender

A social construct that refers to the roles, behaviors, activities, and attributes that a given society considers appropriate for men and women.

Race

A social construct categorizing humans based on physical characteristics, ancestry, genetics, or social relations.

Unemployment Rate

The percentage of the labor force that is jobless and actively looking for employment, a key indicator of the labor market's health.