The Choice of Classification Between Nature and Function of Expenses

question 54

Multiple Choice

The choice of classification between nature and function of expenses from ordinary activities depends on:

• A) The size of the items that would be reported under the possible classifications.
• B) The historical evidence about the probability of the items recurring.
• C) The nature of the entity and historical and industry factors.
• D) The classification that best reflects the way expenses vary directly or indirectly with the entity's level of activity.
• E) None of the given answers.

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Definitions:

Fixation

An obsessive interest or feeling stuck at a particular stage of psychosexual development, according to Freud.

Repression

A psychological defense mechanism where distressing memories, thoughts, or impulses are excluded from conscious awareness.

Forbidden Impulse

An unconscious wish or desire that is deemed unacceptable or taboo by societal standards and is often repressed.

Anxiety

A sensation of apprehension, tension, or discomfort, often in anticipation of an upcoming event or regarding a situation whose outcome is not yet known.