In the Phrase "Generally Accepted Accounting Principles," the Words Accounting

question 29

Multiple Choice

In the phrase "generally accepted accounting principles," the words accounting principles

• A)The standards,assumptions,and concepts that serve as "ground rules" for financial reporting.
• B)Ethical standards that prohibit fraudulent or misleading financial reporting.
• C)The steps in the accounting cycle.
• D)The accounting practices authorized by the Financial Accounting Standards Board (FASB).

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Definitions:

Diseconomies of Scale

The scenario where costs start increasing as a company or project becomes too large, leading to inefficiency.

Bureaucratic

Relating to a system of government in which most of the important decisions are made by state officials rather than by elected representatives.

Large Management

Refers to the administration and execution of strategic objectives within large organizations, involving complex structures and substantial resource allocation.

Increasing Returns

The phenomenon where an increase in the scale of production leads to a proportionally larger increase in output.