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:

Sufficient

Adequate to meet the needs of a situation or a proposed end without needing more.

Sartre

Jean-Paul Sartre, a French existentialist philosopher, playwright, novelist, and political activist known for his explorations of freedom and existentialism.

Extreme Circumstances

Situations that are highly unusual or exceptional, often involving severe stress or urgency.

Negatively Free

A condition where freedom is defined by the absence of external constraints or limitations on one's actions, as opposed to being enabled to pursue certain goals (positive freedom).