The Use of Alternative Accounting Principles

question 134

Multiple Choice

The use of alternative accounting principles

• A) is not a problem in ratio analysis because the notes to the statements disclose the principles used.
• B) may be a problem in ratio analysis even if disclosed.
• C) is not a problem in ratio analysis since eventually all principles will lead to the same end.
• D) is only a problem in ratio analysis with respect to inventory.

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Definitions:

Strict Liability

A legal principle where a party is held responsible for damages or loss, regardless of fault or intent, based solely on their involvement in the activity.

Daubert V.Merrell Dow

A landmark United States Supreme Court case that determined the standard for admitting expert testimony in federal courts.

Rule 702

A regulation in the Federal Rules of Evidence concerning the admissibility of expert witnesses' testimonies in United States courts.

Federal Rule Of Evidence

A set of regulations adopted by United States federal courts governing the admission and use of evidence in proceedings.