In Preparing Financial Statements,accountants Should Consider All of the Following

question 175

Multiple Choice

In preparing financial statements,accountants should consider all of the following except

• A)the objectives of financial reporting.
• B)the characteristics that make accounting information useful.
• C)the most useful way to display the information found on the financial statements.
• D)the presentation of the value of a company.

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Definitions:

Taxes

Compulsory financial charges or levies imposed by a government on individuals and organizations to fund public expenditures.

Erosion

The portion of cash flows of a new project that come at the expense of a firm’s existing operations.

Incremental

Refers to the additional changes in costs or revenues that result from a business decision.

Capital Budgeting

The process used by companies to evaluate and select long-term investments that are expected to yield the highest returns over time.