An Accounting Practice Can Become a "Generally Accepted Accounting Principle

question 116

True/False

An accounting practice can become a "generally accepted accounting principle" through widespread use,even if the practice is not mentioned in the official pronouncements of the accounting standard-setting organizations.

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Definitions:

Lottery

A form of gambling that involves drawing numbers at random for a prize, with varying rules and structures depending on the type.

Business Venture

An entrepreneurial enterprise or new business that is undertaken with the expectation and plan of achieving financial gains.

Ultra Conservative

describes an extremely cautious investment strategy or stance, prioritizing capital preservation over growth or high returns.

False Consensus

A cognitive bias where an individual overestimates the extent to which their beliefs, values, or opinions are shared by others.