Which of the Following Is Not True of Accounting Principles

question 43

Multiple Choice

Which of the following is not true of accounting principles?

• A) Financial accountants follow generally accepted accounting principles (GAAP).
• B) Following GAAP allows accounting information users to compare one company to another.
• C) A new accounting principle can be adopted with stockholders' approval.
• D) The Financial Accounting Standards Board (FASB) has primary responsibility for developing accounting principles.

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Definitions:

Acceptance

The actual or implied receipt and retention of that which is tendered or offered.

Understanding

The internal process of interpreting and comprehending information, concepts, or situations.

Private Party

An individual or a privately owned entity engaging in transactions or events, distinct from governmental or public parties.

Federal Government

The national government of a federal state, where powers are divided between the central government and constituent territorial units.