One of the Major Advantages of Making Adjustments in Order

question 81

Multiple Choice

One of the major advantages of making adjustments in order to improve the quality of financial statements is that they:

• A)ensure that revenues and expenses are recognized during the period they are earned and incurred.
• B)ensure that all estimates of future activities are eliminated from consideration.
• C)ensure that revenues and expenses are recognized conservatively during the period in which they are paid.
• D)provide an opportunity to manipulate the numbers to the best advantage of the reporting company.

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Definitions:

Deliberately Exposing

Intentionally subjecting subjects (in an experiment) or oneself to certain conditions or stimuli to observe the effects.

Direct Observation

A method of collecting data by watching subjects in their natural (or controlled) environment without manipulating the situation.

Variable Of Interest

The specific quantity or quality that a study aims to measure or examine.

Open-Ended Question

A question format that allows respondents to answer in their own words, as opposed to selecting from a predetermined set of responses.