In a Rules-Based Approach (Such as U

question 411

Multiple Choice

In a rules-based approach (such as U.S.GAAP) , compared to a principles-based approach (such as Canadian GAAP) ,

• A)the body of knowledge is smaller.
• B)the importance of communicating the best information to users is emphasized.
• C)since it is more prescriptive, it may be easier to defend how to account for a particular
• Item.
• D)companies frequently do not interpret the rules literally.

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Definitions:

Maxim

A concise statement expressing a general truth or rule of conduct.

Rule

A prescribed guideline for conduct or action established by an authority, which governs behavior within specific contexts.

Morality

Norms that identify the difference between laudable and blameworthy habits.

Summun Bonum

A Latin term meaning the highest or supreme good, often used in ethical, philosophical, and metaphysical contexts to denote the ultimate importance or aim.