Which of the Following Is a True Statement

question 3

Multiple Choice

Which of the following is a true statement?

• A)Under the articulated concept, accounting elements are defined using the revenue-expense approach rather than the asset-liability approach.
• B)The articulated approach severs the mathematical relationships between the balance sheet and income statement.
• C)Under the articulated approach, contributed capital, retained earnings, and unrealized capital adjustments are subclassifications of owners' equity.
• D)Recent SFASs have advocated the non-articulated approach to financial statements.

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Definitions:

Tangible Gain

A clear and measurable benefit or advantage, often of a financial nature.

Utilitarianism

An ethical theory suggesting that the best action is the one that maximizes utility, usually defined as that which produces the greatest well-being of the greatest number of people.

Ethical Dilemmas

Ethical Dilemmas are situations in which a person has to choose between two options, neither of which resolves the situation in an ethically acceptable manner.

Clear-Cut

Something that is easily understood or determined; unambiguous and straightforward.