Which of the Following Requires That Financial Statements Should Report

question 104

Multiple Choice

Which of the following requires that financial statements should report the LEAST favorable figures?

• A) Accounting conservatism
• B) Materiality concept
• C) Disclosure principle
• D) Consistency principle

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Definitions:

Sole Proprietorship

A form of business in which an individual pursues business for a profit.

Small Business Ownership

The operation and responsibilities of running a small-scale business, usually characterized by limited revenue and personnel numbers.

Financing

is the process of sourcing capital or funds to finance the operations, projects, or investments of an individual, organization, or government.

Limited Liability Corporation

A hybrid business form combining the advantages of the sole proprietorship, partnership, and corporation.