Generally Accepted Accounting Principles

question 59

Multiple Choice

Generally accepted accounting principles:

• A)Are based on official decrees only.
• B)Are based on tradition only.
• C)Are based on an accountant's experience only.
• D)May change over time.

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Definitions:

Outsourcing

The practice of hiring third parties to perform services or create goods that were traditionally performed in-house, often to reduce costs or access specialized skills.

Competitors

Other businesses or individuals offering similar products or services in the same market, engaging in a rivalry to gain greater revenue, market share, or recognition.

Documenting

The process of systematically recording information, events, or processes, often for purposes of evidence, compliance, or record-keeping.

Job Evaluation Manuals

Written guides that provide a systematic approach to determining the relative worth of jobs within an organization by outlining criteria, methodologies, and procedures.