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.

Understand the effect of project's salvage value on investment decisions.

Understand the purpose and significance of performance appraisal processes in organizations.

Identify and analyze various performance appraisal methods and their effectiveness.

Recognize legal and ethical considerations in performance appraisals.

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Definitions:

Capital

Capital refers to financial assets or physical goods that are used by a company to produce goods, offer services, or create additional wealth, including tools, machinery, and buildings.

Chicago Cubs

A professional American baseball team based in Chicago, Illinois, known for their long history and passionate fanbase.

Implicit Cost

The opportunity costs of using resources that a company already owns to produce goods or services, not involving direct payment.

Central Florida

A region in the U.S. state of Florida, typically considered to include the central part of the state, known for its tourism industry and attractions such as theme parks.