Which of the Following Statements Is True About the Comparability

question 31

Multiple Choice

Which of the following statements is true about the comparability of financial statement of the United States and the United Kingdom?

• A) The result of Latin American colonialism is the large number of countries with the United Kingdom's influence on their accounting practices.
• B) The financial statements of companies in the United States and the United Kingdom are comparable as they are prepared after adjusting inflation, which is a critical factor affecting accounting practice.
• C) The basic principle followed by both countries in preparing financial statements is government economics and government tax and legal framework.
• D) The accounting practices of both the countries are oriented toward the decision needs of a large number of investors and creditors.

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Definitions:

Storge

In John Lee’s typology of love, companionate love.

Financial Stability

The condition of having predictable and sufficient income or resources to meet all debts, obligations, and needs without undue stress.

Pragma

A style of love that emphasizes practicality and compatibility in romantic relationships, focusing on long-term considerations and shared goals.

Ludus

A term originating from Latin, referring to a style of love characterized by game-playing, fun, and avoiding emotional attachment.