When a Statute Uses the Word "Shall," This Means That

question 56

Multiple Choice

When a statute uses the word "shall," this means that it will

• A) be interpreted as requiring a particular action.
• B) be interpreted as allowing discretion.
• C) not be official.
• D) None of these choices is correct.

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Definitions:

Going Concern Assumption

The Going Concern Assumption is an accounting principle that assumes a company will continue to operate and not go bankrupt or be liquidated in the foreseeable future.

Liquidation

The process of winding up a company's financial affairs by selling its assets to pay off its debts.

Predictive Value

The ability of financial information to help users make accurate predictions about future outcomes.

Future Events

Incidents or occurrences that have not yet happened but are anticipated or expected to occur in the course of a business's operation.