In Making a Judgment in Developing or Applying an Accounting

question 12

Multiple Choice

In making a judgment in developing or applying an accounting policy about whether information is relevant and reliable in the financial statements, management must refer to the following reference first:

• A) the definitions in the IASB Framework;
• B) requirements and guidance in Standards and Interpretations;
• C) recognition criteria contained in the IASB Framework;
• D) the measurement concepts for assets, liabilities, income and expenses in the IASB Framework.

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Definitions:

Decremental

Characterized by a gradual decrease in size, strength, or value over time.

Incidental

Occurring alongside or as a minor accompaniment to something else, not central or primary.

Need for Achievement

A psychological drive that fosters the pursuit of accomplishing difficult tasks and meeting high standards of success.

NAch

N-Acetylcholine, a neurotransmitter involved in the activation of muscle action, learning, and memory.