Which of the Following Is Not True of Accounting Principles

question 43

Multiple Choice

Which of the following is not true of accounting principles?

• A) Financial accountants follow generally accepted accounting principles (GAAP).
• B) Following GAAP allows accounting information users to compare one company to another.
• C) A new accounting principle can be adopted with stockholders' approval.
• D) The Financial Accounting Standards Board (FASB) has primary responsibility for developing accounting principles.

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Definitions:

Absolute Thresholds

The minimum stimulus energy needed to detect a particular stimulus 50% of the time.

General Tendency

A common or widespread inclination, pattern, or trend among people or phenomena.

Absolute Threshold

The minimum intensity of a stimulus that one can detect at least 50% of the time, which varies from one individual to another and for different senses.

Reliable Detection

The ability to consistently and accurately identify or recognize the presence of a specific condition, substance, or pattern.