Which of the Following Is Not a Basic Principle of the COSO

question 125

Multiple Choice

Which of the following is not a basic principle of the COSO ERM framework?

• A)Companies are formed to create value for society.
• B)Management must decide how much uncertainty it will accept to create value.
• C)Uncertainty results in risk.
• D)Uncertainty results in opportunity.

---

Definitions:

Economic Life

The expected period of time during which an asset is useful to the average owner.

Amortization Expense

The periodic expense recognized in the financial statements for the gradual write-off of the cost of intangible assets over their useful life.

Research and Development Costs

Expenses associated with the investigation and creation of new products or services, which can include salaries, materials, and overhead costs.

Trademark

A sign, term, or set of words officially recognized or established through legal registration or usage to symbolize a corporation or merchandise.