According to the Inductive Approach to Accounting Classification

question 19

Multiple Choice

According to the inductive approach to accounting classification,

• A) accounting practices are analyzed and used to develop accounting groups.
• B) international accounting groups are developed by linking environmental factors to national practices.
• C) it is impossible to compare countries due to political differences.
• D) Mueller classifies accounting systems into the following patterns: macroeconomic, microeconomic, independent discipline, and uniform accounting.

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Definitions:

Fully Executed

A contract or agreement that has been completely signed by all parties involved and all the terms are fully met.

Rescinded by Agreement

The mutual decision of parties involved in a contract to cancel or nullify the agreement.

Anticipatory Repudiation

An assertion or action by a party indicating that he or she will not perform an obligation that he or she is contractually obligated to perform at a future time.

Material Breach

A significant violation of a contract that substantially undermines the agreement, giving the aggrieved party the right to seek legal remedies.