Which of the Following Requires Disclosure in an Entity's Accounting

question 10

Multiple Choice

Which of the following requires disclosure in an entity's accounting policy note?

• A)the fact that the entity is a going concern
• B)the measurement bases used in the preparation of the financial statements
• C)the fact that the entity has adopted the accruals basis of accounting
• D)that the entity is a reporting entity

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Definitions:

Uncertain Environments

Conditions wherein the outcome of business operations is unpredictable due to changing external factors.

Informed Guessing

Making decisions or predictions based on available data and insights, even in the absence of complete information.

Risk Environment

An environment that lacks complete information but offers “probabilities” of the likely outcomes for possible action alternatives.

Factual Information

Data or details that are true and can be verified through evidence or observation.