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

---

Definitions:

Need for Affiliation

The desire to form connections with others and be part of a group or community.

Need for Competence

An individual's intrinsic desire to be effective in dealing with the environment and to master complex tasks.

Intrinsic Motivation

A drive to perform an activity for its inherent satisfaction rather than for some separable outcome or external reward.

Need for Capability

The requirement for a person or organization to have the skills, resources, or abilities necessary to accomplish a task or realize a goal.