To Obtain a Slightly More Accurate Measure of Net Income

question 163

Multiple Choice

To obtain a slightly more accurate measure of net income, Gabrielli Company has determined that it must hire two full-time accountants. However, if it decides against the hiring, it has followed the convention of

• A) full disclosure.
• B) materiality.
• C) comparability.
• D) cost-benefit.

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Definitions:

Biological Explanations

Theories that attribute behavioral and psychological phenomena to biological factors, such as genetic, neurological, or physiological processes.

Cultural Explanations

These are interpretations or understandings of behaviors, practices, and beliefs that are framed in the context of the cultural background or tradition from which they arise.

Stereotype Threat

The risk of confirming negative stereotypes about one's group, which can hinder performance and affect behavior.

African Americans

A racial or ethnic group in the United States with ancestry from any of the black racial groups of Africa.