What Option(s)does a Company Have When Directors Are of the View

question 63

Multiple Choice

What option(s) does a company have when directors are of the view that compliance with accounting standards does not generate a 'true and fair view' financial statements?

• A) Directors may elect not to comply with the standard.
• B) Directors may exercise the 'true and fair view override'.
• C) Directors may disclose the standard in question, the nature of conflict and adjustments made.
• D) All of the given answers are correct.

---

Definitions:

Revenue Journal

A specialized accounting journal used to record the sales of goods and services and revenue generated.

Accounts Receivable

This term represents money owed to a business by its clients for goods or services delivered but not yet paid for.

Controlling Account

A general ledger account that summarizes the total amounts listed in a subsidiary ledger.

Cash Payments Journal

A financial journal that records all cash payments made by a business, including expenses, asset purchases, and debt payments.