There Still Remain Problems When Accounting Policies Are Disclosed for Choices

question 160

Multiple Choice

There still remain problems when accounting policies are disclosed for choices made among acceptable alternatives.All of the following are problems except:

• A) There is no disclosure of crucial policies, such as revenue recognition.
• B) Disclosure is generally too vague to be of use without additional information.
• C) Some industries do not have to disclose accounting policies.
• D) The disclosure is specific, but the numerical information is missing.

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Definitions:

Inability to Innovate

The lack of capability or creativity in developing new products, services, or processes, which can hinder a business's growth and competitiveness.

Initial Financing

The first round of funding a business obtains to start operations, which can come from a variety of sources including personal savings, loans, or investor money.