The Difference Between Objectives and Criteria Is That

question 38

Multiple Choice

The difference between objectives and criteria is that

• A)Objectives state what the decision should accomplish,criteria are the standards that alternatives should meet
• B)Objectives state what the decision should accomplish,criteria help decide what the objective is
• C)There is only one objective,but can be multiple criteria
• D)Criteria determine the objectives

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Definitions:

Economic Entity Assumption

The economic entity assumption is an accounting principle that treats a company as a separate entity from its owners for reporting purposes.

Comparability

A qualitative characteristic of financial information that allows stakeholders to identify similarities and differences between two or more sets of economic facts.

Faithful Representation

A fundamental qualitative characteristic in accounting, ensuring that financial information accurately reflects the economic events it purports to represent.

Financial Reporting

Generating documents that unveil the financial situation of a company to stakeholders, including managers, investors, and regulatory authorities.