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:

Lawrence Kohlberg

A psychologist known for his theory of moral development, which suggests that individuals progress through stages of moral reasoning as they grow.

Zygotes

The initial cell formed when a new organism is produced by the combination of male and female reproductive cells.

Epigenetics

The study of changes in organisms caused by modification of gene expression rather than alteration of the genetic code itself.

Maturation

The process of becoming mature, encompassing physical, mental, and emotional growth over time.