Accounting Principles

question 38

Multiple Choice

Accounting principles:

• A)explain financial phenomena.
• B)are similar to natural laws, like the law of gravity.
• C)apply only to large business organisations.
• D)should be accepted by people and organisations who need financial information to make decisions.

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Definitions:

Excess Liquidity

The situation in which an individual or entity has more liquid assets available than is necessary for immediate operational needs.

Freeze-Out

happens in a corporate context when majority shareholders exclude minority shareholders from decision-making, often to coerce them into selling their shares.

Minority Shareholders

Individuals or entities that own a smaller portion of a company's shares, thus having less influence over corporate decisions than majority shareholders.

Type Of Oppression

Refers to unfair or unjust treatment or control, especially in a legal context, where one party uses their position to unduly suppress or burden another.