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:

Organizational Effectiveness

Measures how efficiently and effectively an organization meets its goals and objectives, often assessed through performance, productivity, and the achievement of strategic targets.

Efficiency

The degree to which something is done well or produces desired results without wasted energy or material.

Organization's Purpose

The fundamental reason for an organization's existence, often reflecting its goals, values, and the needs it seeks to fulfill in the market or community.

Project Management Office

An organizational structure within a business that standardizes project-related governance processes and facilitates the sharing of resources, methodologies, tools, and techniques.