For a Particular Entity's Financial Statements to Be Presented Fairly

question 14

Multiple Choice

For a particular entity's financial statements to be presented fairly in conformity with generally accepted accounting principles,it is not required that the principles selected:

• A)Be appropriate in the circumstances for the particular entity.
• B)Reflect transactions in a manner that presents the financial statements within a range of acceptable limits.
• C)Present information in the financial statements that is classified and summarized in a reasonable manner.
• D)Be applied on a basis consistent with those followed in the prior year.

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Definitions:

Organizational Culture

The shared values, beliefs, and practices that influence the way members of an organization interact with each other and with stakeholders outside the organization.

Inherent Beliefs

Deeply rooted thoughts or convictions considered to be an essential part of one's character or personality, often influencing behavior and perspective.

Assumptions

Accepted beliefs or statements taken for granted without proof.

Values

Enduring beliefs that a specific mode of conduct or end state of existence is personally or socially preferable to an opposite or converse mode of conduct or end state of existence.