A Primary Reason That the FASB Requires That GAAP Be

question 19

Multiple Choice

A primary reason that the FASB requires that GAAP be consistently applied from one period to the next is

• A)accuracy
• B)completeness
• C)neutrality
• D)comparability

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Definitions:

Foreign Currency

Currency used in a country other than one’s own, representing a medium of exchange for goods and services in that foreign country.

Demand

The quantity of a good or service that consumers are willing and able to purchase at a given price over a specific period.

Direct Quote

A foreign exchange rate quoted as the domestic currency per unit of a foreign currency.

Forward Contract

A non-standardized agreement between two parties to buy or sell an asset at a specified future date at a price agreed upon today.