Which of the Following Requires That Financial Statements Should Report

question 19

Multiple Choice

Which of the following requires that financial statements should report the LEAST favourable figures?

• A)Accounting conservatism
• B)Relevance principle
• C)Materiality concept
• D)Comparability principle

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Definitions:

Industrialized

The process of developing industries in a country or region on a wide scale.

Rich Democracies

Countries characterized by high levels of economic development, wealth, and democratic governance.

Organ Reserve

The capacity of organs to allow the body to cope with stress, via extra, unused functioning ability.

Homeostasis

The adjustment of all of the body’s systems to keep physiological functions in a state of equilibrium. As the body ages, it takes longer for these homeostatic adjustments to occur, so it becomes harder for older bodies to adapt to stress.