If a Country Uses a Disclosed Basis of Accounting for Private

question 1

Multiple Choice

If a country uses a disclosed basis of accounting for private companies, which of the following statements is true?

• A)Private companies can create their own GAAP as long as it is disclosed and the spirit of the country's GAAP standards has been followed.
• B)Private companies can pick and choose which aspects of GAAP to follow.
• C)Private companies must report using fair value.
• D)Private companies must report using both historical and fair value.

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Definitions:

Behavior

The actions or reactions of an individual or system in response to external or internal stimuli.

Observable Actions

Behaviors or actions that can be seen and measured by others, typically used in behavioral assessments.

Personality Traits

Enduring characteristics or qualities that define an individual’s patterns of thought, emotion, and behavior.

Genetic Predisposition

The increased likelihood of developing certain traits or disorders based on one's genetics.