Which of the Following Requires That Financial Statements Should Report

question 22

Multiple Choice

Which of the following requires that financial statements should report the LEAST favourable figures?

• A)Relevance principle
• B)Accounting conservatism
• C)Comparability principle
• D)Materiality concept

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Definitions:

PPOs

Preferred Provider Organizations, a type of health plan that contracts with medical providers to create a network of preferred doctors and hospitals for its members.

DRG Payment System

The Diagnosis-Related Group (DRG) payment system is a method used by Medicare and some other insurance programs to categorize hospitalization costs and determine how much to pay for a patient's hospital stay.

Fee-For-Service System

A pricing structure where services are itemized and each is charged individually.

Health Care Expenses

The costs associated with medical care, including treatments, medications, hospital stays, and other related expenses.