Which of the Following Is an Assumption Made by the Classical

question 86

Multiple Choice

Which of the following is an assumption made by the classical model?

• A)There is no optimum decision.
• B)There is more than one alternative.
• C)There is only one alternative.
• D)Managers have access to all the information they need.
• E)Managers cannot apply their own preferences to make a decision.

---

Definitions:

GAAS Auditing

Standards that guide the conduct of audits on the financial statements of companies, known as Generally Accepted Auditing Standards.

Adverse Opinion

An auditor’s opinion that states that deviations from generally accepted accounting principles are so serious that an unqualified opinion is impossible and a qualified opinion is not justified.

GAAP

Generally Accepted Accounting Principles; the standard framework of guidelines for financial accounting used in any given jurisdiction.

FASB

Stands for Financial Accounting Standards Board, an organization responsible for establishing accounting and financial reporting standards for companies and non-profit organizations in the United States.