Which of the Following Is a Difference Between Personal Financial

question 2

Multiple Choice

Which of the following is a difference between personal financial statements and business financial statements?

• A) Personal financial statements follow the cost principle, whereas business financial statements do not follow the cost principle.
• B) Personal financial statements should present assets at estimated current values, whereas business financial statements should present assets at historical cost.
• C) Personal financial statements are not governed by GAAP, whereas business financial statements are governed by GAAP.
• D) Personal financial statements are prepared for a specific period of time, whereas business financial statements are prepared for a general period.

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Definitions:

Society

A group of individuals involved in persistent social interaction, or a large social grouping sharing the same geographical or social territory, typically subject to the same political authority and dominant cultural expectations.

Culture

The shared values, traditions, norms, customs, arts, history, folklore, and institutions of a group of people that are passed from one generation to another.

Slavery

A system in which individuals are owned by others, deprived of personal freedom, and compelled to perform labor or services.

Land

The surface of the earth not covered by water, considered as property and a natural resource used for agriculture, building, and habitation.