The Accounting Principle That Requires Important Noncash Financing and Investing

question 167

Multiple Choice

The accounting principle that requires important noncash financing and investing activities be reported on the statement of cash flows or in a footnote is the:

• A) Historical cost principle.
• B) Materiality principle.
• C) Full disclosure principle.
• D) Going concern principle.
• E) Business entity principle.

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Definitions:

Sensory Cortex

Part of the brain responsible for receiving and interpreting sensory information from different parts of the body.

Corticospinal Tract

A collection of neurons in the brain that project to the spinal cord and are involved in motor control.

Lateral Spinothalamic Tract

A neural pathway in the spinal cord responsible for transmitting pain and temperature sensations to the brain.

Head Control

The ability to hold and move the head in a stable and controlled manner, a developmental milestone in infants.