Indicate Those Items for Which Generally Accepted Accounting Principles Require

question 118

Multiple Choice

Indicate those items for which generally accepted accounting principles require disclosure in notes accompanying the financial statements. (More than one answer may be correct.)

• A) A large lawsuit was filed against the company two days after the balance sheet date.
• B) The depreciation method in use, given that several different methods are acceptable under generally accepted accounting principles.
• C) Whether small but long-lived items-such as electric pencil sharpeners and handheld calculators-are charged to asset accounts or to expense accounts.
• D) As of year-end, the chief executive officer had been hospitalized because of chest pains.

---

Definitions:

Margin Of Error

An estimate of the amount by which an observed sample statistic may differ from the true population parameter, reflecting the confidence level of the statistic.

Population Standard Deviation

A measure that quantifies the amount of variation or dispersion of a set of data values across a whole population.

Sample Size

The number of participants or observations included in a sample, used in statistical analysis to make inferences about a larger population.

T-Distribution

A probability distribution that is used to estimate population parameters when the sample size is small and the population standard deviation is unknown.