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:

Decrease Assets

A reduction in the total value or amount of economic resources owned or controlled by an entity.

Owner's Equity

The residual interest in the assets of an entity that remains after deducting its liabilities, reflecting the ownership interest in the company.

Cash

Currency and other liquid instruments that are used to conduct transactions or settle debts.

Accounts Receivable

Funds that customers owe to a company for products or services already provided but not yet compensated for.