An Argument for a Broad, Principles-Based Approach to Standard-Setting Is

question 51

Multiple Choice

An argument for a broad, principles-based approach to standard-setting is that

• A) It leaves specific accounting decisions to the professional judgment of the accountants involved.
• B) There will be greater consistency in how different companies handle identical transactions.
• C) Accountants who are challenged in how they handled a transaction will be able to point to a specific rule to justify their decision.
• D) There will be detailed specific accounting guidance for each important industry and country.

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Definitions:

Intensity

The degree of strength, force, or level of energy in an activity, phenomenon, or a person's actions.

Pitch

In acoustics, pitch is the perceived frequency of a sound, determining how high or low a tone sounds.

Frequency

The frequency at which an event recurs within a given time frame.

Umami

One of the five basic tastes, often described as savory or meaty, and is characteristic of foods containing glutamate.