Making Notes in the Financial Statements to Explain the Justification

question 89

Multiple Choice

Making notes in the financial statements to explain the justification of valuation changes and other financial decisions would be an example of:

• A) conservatism.
• B) consistency.
• C) materiality.
• D) full disclosure.
• E) cost principle.

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Definitions:

Negative

A term often used to denote the absence or opposition of a condition, quality, or action.

Reinforcement

In psychology, a process in which a behavior is strengthened by the outcome that follows it, either through a positive reinforcement or the removal of a negative stimulus.

Shaping

A method of conditioning by which successive approximations toward a target behavior are reinforced, used in both animal training and therapeutic settings.

Classical Conditioning

Acquiring knowledge when an environmental stimulus is linked to one that naturally exists.