Which of the Following Is Not a Reason Preparers of Financial

question 6

Multiple Choice

Which of the following is not a reason preparers of financial statements need to make choices about which accounting policies to use?

• A) Some aspects of financial reporting practice are not covered by specific accounting standards
• B) Some standards have alternative policies with no clear indication of the proper criteria to be used
• C) Judgements are to be made for certain issues, such as useful life, depreciation, and allowance for doubtful debts
• D) The IASB is attempting to converge accounting policies with other worldwide accounting standards setters

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Definitions:

Heritable

Capable of being passed from one generation to the next through genetic information.

Human-Relations Approach

An approach in organizational management that emphasizes the importance of understanding human motivations, group dynamics, and interpersonal processes in the workplace.

Varied And Interesting

Describes activities, tasks, or content that are diverse and engaging, aimed at maintaining attention and motivation.

Subgoals

Intermediate objectives or steps designed to facilitate the achievement of a primary goal.