Which Type of Accounting Principle Is Concerned with General Approaches

question 45

Multiple Choice

Which type of accounting principle is concerned with general approaches or rules for preparing financial statements and their content?

• A)Input-oriented principles
• B)Output-oriented principles
• C)Constraining principles
• D)Both a and c

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Definitions:

Price Taker

A seller (or buyer) that is unable to affect the price at which a product or resource sells by changing the amount it sells (or buys).

Monopolistic Competitor

A firm in a market where many competitors sell products that are differentiated from one another and hence are not perfect substitutes.

Pure Competitor

A market condition where many small firms sell identical products, and no single seller can influence the market price.

Marginal Resource Cost Curve

A graphical representation showing the change in total cost incurred by a firm when it utilizes an additional unit of an input or resource.