Principles-Based GAAP Is Sometimes Criticized for Being

question 73

Multiple Choice

Principles-based GAAP is sometimes criticized for being

• A) too inflexible.
• B) too flexible.
• C) too inconsistent.
• D) too difficult for the reader to understand.

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Definitions:

Enforce Contract

The legal process of compelling compliance with the terms of a contract, typically through court action or arbitration.

Reformation

An act of reforming or amending something, often used in legal contexts to refer to the modification of a contract to reflect the true intentions of the parties involved.

Lease

A contract for the possession and use of land or other property, including goods, on one side, and a recompense of rent or other income on the other; a conveyance to a person for life, or years, or at will in consideration of a return of rent or other recompense.

Economic Duress

A situation where a party is forced to enter into a contract under severe financial pressure, making the agreement voidable.