Which of the Following Is NOT a Reason That Preparers

question 2

Multiple Choice

Which of the following is NOT a reason that preparers of financial reports are obliged to make choices?

• A) There is frequently a decision to be made as to whether to adjust the figures for something or to disclose it in the footnotes or other narrative material.
• B) Directors have a responsibility to choose the accounting method that shows the highest profit.
• C) Accrual accounting necessitates choices about accounting figures,notes and methods.
• D) Governments and professional accounting standard setters have been reluctant to specify all solutions and require all enterprises to follow them.

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Definitions:

Agoraphobia

A type of anxiety disorder characterized by an intense fear of being in situations where escape might be difficult or help would not be available in the event of a panic attack or panic-like symptoms.

Marketplace

An economic term describing a space or system where goods and services are exchanged between buyers and sellers.

Closed Places

Refers to confined or restricted spatial areas that may induce feelings of entrapment or claustrophobia.

Blood-Injection-Injury Type Phobias

Extreme fears of seeing blood or an injury or of receiving an injection or another invasive medical procedure, which cause a drop in heart rate and blood pressure and fainting.