What Is Meant by Germany's "Authoritative Principle

question 79

Multiple Choice

What is meant by Germany's "authoritative principle?"

• A)The GASB is the final authority for accounting standards.
• B)The International Accounting Standards Board is the authority for making German GAAP.
• C)Financial statements are the basis for determining tax.
• D)Accounting standards are derived from tax law.

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Definitions:

Cultural Outlook

The perspective or viewpoint that is shaped by the beliefs, values, and practices of a culture, influencing how individuals interpret the world around them.

Cultural System

The collection of shared beliefs, values, norms, and practices that dictates the way of life for a group of people or society.

Individualism

A cultural system that values the needs of the individual self more than those of the group.

Needs of the Self

Essential psychological requirements necessary for an individual to maintain self-integrity, personal well-being, and development.