Which of the Following Is More Likely to Be a Problem

question 1

Multiple Choice

Which of the following is more likely to be a problem in a presidential system than in a parliamentary system?

• A) weakening of the judiciary over time as a result of conflicts between presidential and legislative authority
• B) policy disagreement between a legislature and the executive that restricts lawmaking for a long period, even if the executive has become unpopular with the electorate
• C) policy disagreement between a legislature and the executive that results from a very small party in the legislature denying a law a majority vote
• D) growth of power in political parties as presidential candidates become more beholden to party loyalists

Acknowledge the concepts of accruals, deferrals, and their roles in adjusting entries.

Appreciate the importance of the principle of materiality in making accounting judgments.

Realize the significance of consistency, comparability, and reliability in financial reporting.

Understand the economic entity assumption and the separation of business and personal transactions.

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Definitions:

Corporations

Legal entities recognized by law, formed by individuals or groups to conduct business, which can own assets, incur liabilities, and sell equity.

Initial Stockholders

The original investors or owners of a company’s stock at the time of its issuance.

Newly Formed

Refers to an entity or organization that has recently been created or established.

Directors

Individuals elected by shareholders to oversee and make high-level decisions for a corporation, forming its board of directors.