Which of the Following Is Not a Reason Why ARS

question 67

Multiple Choice

Which of the following is not a reason why ARS 1 and ARS 3 fell short of the goal of obtaining a framework for APB accounting opinions?

• A)The authors refused to abandon historical cost.
• B)The postulates were not complete and therefore could not exclude all value systems other than the one prescribed in the principles.
• C)At least one of the principles was not derived from any of the postulates.
• D)The question of whether valuations of various assets were additive became an issue.

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Definitions:

Luxury Watchmaker

A company or individual specialized in designing, manufacturing, and selling high-end, precision timepieces, often with a focus on craftsmanship and prestige.

Prestige

The respect and admiration that something or someone receives based on a perception of their success or quality.

Breakeven Analysis

Pricing-related technique used to determine the minimum sales volume a product must generate at a certain price level to cover all costs.

Fixed Costs

Expenses that do not change in proportion to the activity of a business, such as rent, salaries, and insurance.