Which of the Following Statements Is True About Early Codification

question 22

Multiple Choice

Which of the following statements is true about early codification of accounting rules?

• A) In the early part of the twentieth century, limited work was undertaken to codify particular accounting principles or rules.
• B) Accountants used rules of which they were aware, and which they believed were most appropriate to the particular circumstances.
• C) There was very limited uniformity between the accounting methods adopted by different organisations, thereby creating comparability problems.
• D) All of the given options are correct.

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Definitions:

Limited Partnership

A form of partnership where one or more partners have limited liabilities and limited involvement in the day-to-day management, while at least one partner has unlimited liability.

General Partners

Individuals or entities that manage a partnership and are personally responsible for its debts.

Limited Partners

Investors who contribute capital to a partnership but are not involved in its daily management, and whose liability is limited to the amount they invested.

U.S. Law

The legal rules and regulations that govern behavior and activities within the United States.