Which Type of Claim Advocates a Change in a Course

question 3

Multiple Choice

Which type of claim advocates a change in a course of action?

• A) Fact
• B) Value
• C) Policy
• D) Definition

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Definitions:

Owner's Equity Statement

A financial document detailing the changes in the equity of an owner in a company over a specific period.

Time Period Assumption

An accounting principle that suggests a business's activities can be divided into specific time periods for reporting purposes.

Fiscal Year

The one-year period an organization uses for accounting purposes and preparing financial statements, which may or may not align with the calendar year.

Revenue Recognition Principle

A fundamental accounting principle that dictates when revenue should be recognized in the financial statements, typically when it is earned and realizable.