The Main Goal of Both U

question 174

Multiple Choice

The main goal of both U.S.GAAP and IFRS is to:

• A)ensure that companies produce useful information for capital providers.
• B)reduce the number of required financial statements.
• C)prevent all fraud and ensure the amounts reported are precise to the penny.
• D)ensure that companies become more profitable.

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Definitions:

Production Tax

A tax imposed by governments on the production, sale, or use of goods and services within their jurisdiction.

Supply Curve

a graph showing the relationship between the price of a good and the quantity of the good that suppliers are willing and able to supply.

Equilibrium Price

The market price at which the quantity of a good supplied equals the quantity demanded, resulting in market balance.

Buyers

Individuals or organizations that purchase goods or services for personal use or for resale.