In the Absence of Specific GAAP Guidance, an Entity Should

question 21

Multiple Choice

In the absence of specific GAAP guidance, an entity should adopt accounting policies that are i. consistent with specific GAAP guidance.
Ii) consistent with the most conservative reporting choices.
Iii) collaboratively developed with the assistance of all business units.
Iv) developed through exercising professional judgement and applying the conceptual framework.

• A) i, ii, and iii
• B) i and iii
• C) i and iv
• D) ii and iv

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Definitions:

Normal People

Individuals who conform to the prevailing norms and standards of society, often considered as average or typical members of a community.

Homosexuals

Individuals who are sexually attracted to people of the same sex.

Propensity

Propensity is an innate inclination or natural tendency to behave in a certain way.

Heterosexual Couples

Romantic partners consisting of a male and a female.