A Lesser-Developed Country

question 7

Multiple Choice

A lesser-developed country:

• A) Is not stable with respect to its economy and technological development
• B) Exists on the African continent only
• C) Is in areas with a warm climate
• D) Has a high number of persons with the acquired immunodeficiency syndrome (AIDS)

---

Definitions:

Accounting Assumptions

Accounting Assumptions are foundational principles followed in the preparation of financial statements, such as the consistency, going concern, and accrual basis.

Conventions

Established practices or standards in accounting that guide the preparation and presentation of financial statements.

Materiality Principle

An accounting principle that states financial reports should include all items significant enough to influence the decision-making process of an individual reading the report.

Charging to Expense

The process of recognizing a cost as an expense in the income statement during the period in which it is incurred.