The Goal of Reporting Realistic Figures and Never Overstating Assets

question 17

Multiple Choice

The goal of reporting realistic figures and never overstating assets or net income applies to the ________.

• A) conservatism principle
• B) materiality concept
• C) disclosure principle
• D) consistency principle

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Definitions:

Cognitive Appraisal

Cognitive appraisal is the process by which an individual evaluates and interprets a situation or event in terms of its personal significance.

Emotional Experience

The complex psychological state involving thoughts, behaviors, and physiological responses arising from feelings or emotions.

High-Road Pathway

A cognitive route of processing that involves deliberate, conscious analysis and decision making.

Thalamus

A major relay station in the brain's center through which all sensory information, except for smell, passes to the cerebral cortex.