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.