Which of the Following Statements Relating to the Role of Professional

question 144

Multiple Choice

Which of the following statements relating to the role of professional judgment in the financial reporting process are valid?

• A) Different accountants may evaluate similar situations differently.
• B) The determination of which items should be disclosed in notes to financial statements requires professional judgment.
• C) Once a complete list of generally accepted accounting principles is prepared, judgment need no longer enter into the financial reporting process.
• D) The possibility always exists that professional judgment later may prove to have been incorrect.

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Definitions:

Thoracic

Pertaining to the chest area, specifically referencing the part of the spine that connects to the ribs.

Cervical

Relating to the cervix, the lower, narrow part of the uterus that connects to the vagina, or relating to the cervical vertebrae in the neck.

Sacral

Pertaining to the sacrum, a large, triangular bone at the base of the spine that forms the back wall of the pelvis.

Synovial

Pertaining to or secreting synovia, a lubricating fluid found in the cavities of synovial joints, facilitating smooth movement.