Which of the Following Is Not True for the International

question 22

Multiple Choice

Which of the following is not true for the International Accounting standards and the International Financial Reporting Standards?

• A) They are based on the legalistic approach
• B) They provide choices in recognition and measurement of various accounting transactions
• C) They incorporate 'uncertainty expressions' (such as 'probable', 'significant influence', 'control' and 'substantial')
• D) They are based on the concept of presenting 'true and fair view' of a company's financial reports, where the professional accountants are given the right to use their judgment to accomplish this goal

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Definitions:

Safety Inventory

Extra stock kept on hand to guard against uncertainty in demand or supply and prevent stockouts.

Uncertain Demand

Refers to situations where future customer demand for a product or service is unclear or difficult to predict.

Losing Sales

The phenomenon of experiencing a decrease in the number of sales transactions or revenue, often as a result of competition, market shifts, or other external factors.

Seasonal Inventory

Goods or materials stocked in anticipation of seasonal demand variations.