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:

Costing Systems

Approaches and methodologies used by companies to allocate costs to their products or services for the purposes of inventory valuation and profitability analysis.

Marginal Revenue Curve

A graph that shows the increase in revenue generated from selling one additional unit of a good or service.

Total Revenue

The total income generated by a company from its business activities, typically from the sale of goods and services before any expenses are deducted.

Quantity Sold

The total number of units of a product sold during a specific period, often used to measure business performance.