Which of the Following Is NOT a Reason That Preparers

question 2

Multiple Choice

Which of the following is NOT a reason that preparers of financial reports are obliged to make choices?

• A) There is frequently a decision to be made as to whether to adjust the figures for something or to disclose it in the footnotes or other narrative material.
• B) Directors have a responsibility to choose the accounting method that shows the highest profit.
• C) Accrual accounting necessitates choices about accounting figures,notes and methods.
• D) Governments and professional accounting standard setters have been reluctant to specify all solutions and require all enterprises to follow them.

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Definitions:

Coelom

refers to the body cavity in animals that is lined by mesoderm tissue, separating the digestive tract from the outer body wall.

Deuterostomes

A superphylum of animals characterized by the blastopore developing into the anus during early embryo development.

Blastopore

The opening of the central cavity of an embryo in the early stage of development, which eventually develops into the digestive tract in some animals.

Coelom

The fluid-filled body cavity between the intestinal canal and the body wall in triploblastic animals, providing space for the development of internal organs.