Which of the Following Accounting Policies Is an Example of a Trade-Off

question 32

Multiple Choice

Which of the following accounting policies is an example of a trade-off between relevance and reliability?

• A)Research outflows are expensed and development activities expenses are capitalized.
• B)Biological assets are stated at fair value unless the fair value cannot be measured reliably.
• C)Machinery and equipment are reviewed periodically to assess propriety of useful life estimations used in depreciation.
• D)All of the given answers.
• E)None of the given answers.

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Definitions:

Gender Constancy

Gender constancy is the understanding that one's gender remains the same across time and situations, typically achieved by the age of approximately 6 or 7 years.

Gender Stereotyping

The practice of applying generalized beliefs or attributes about the abilities, characteristics, and roles of individuals based solely on their gender.

Affection

A feeling of fondness or tenderness toward someone or something.

Prohibitive

Referring to something that discourages action or imposes a constraint by rules, laws, or circumstances.