Which of the Following Is a Value Judgment Found in SFAC

question 26

Multiple Choice

Which of the following is a value judgment found in SFAC No. 1?

• A)Accounting reports should become the only relevant source of information about enterprises.
• B)Cash basis accounting is extremely useful in assessing and predicting earning power and cash flows of an enterprise.
• C)Information is not costless to provide, so benefits of usage should exceed costs of production.
• D)Users of accounting information have limited ability regarding financial information and reporting.

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Definitions:

Federalists

Advocates for a strong central government who supported the ratification of the U.S. Constitution in the late 18th century, distinct from later political parties.

Internal Mobilization

Refers to the process by which a state prepares and assembles its resources and people for military action or national defense.

Jeffersonian Party

An early American political party founded by Thomas Jefferson and James Madison around the 1790s that advocated for a decentralized government and agricultural society; also known as the Democratic-Republican Party.

Jeffersonian Republicans

A political ideology from the early United States advocating for limited federal government and agrarian democracy, associated with Thomas Jefferson.