Which of the Following Is an Argument in Favour of a GAAP

question 20

Multiple Choice

Which of the following is an argument in favour of a GAAP body of knowledge that is more prescriptive, or rules-based?

• A) It always emphasizes communicating the best information for users.
• B) The body of knowledge becomes significantly smaller and therefore easier to manage.
• C) It may be easier to defend how to account for a particular item.
• D) There is a tendency for companies to interpret guidelines loosely, and thus account for items inconsistently.

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Definitions:

Two Processors

A system configuration that involves two central processing units (CPUs) working together, often to increase performance or provide redundancy.

Actuator

A device used to convert a control signal into mechanical motion.

Discrete Output

Pertains to an output signal in automation systems that has only two states, commonly referred to as On or Off.

PLC

Programmable Logic Controller, an industrial digital computer which has been ruggedized and adapted for the control of manufacturing processes.