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:

Percent

A mathematical term describing a part per hundred, used to express proportions or ratios.

Intestate

Describes a person who dies without a will.

Decedent

The deceased person.

Escheat

Property of a decedent goes to the state if not disposed of by a will and if the decedent has no heirs.