The Three Criteria for Fairness of Presentation Reporting Suggest ________

question 41

Multiple Choice

The three criteria for fairness of presentation reporting suggest ________ reasoning for accounting.

• A)compliance-based
• B)principles-based
• C)engagement-based
• D)fairness-based

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Definitions:

Net Income

The profit remaining after all expenses, taxes, and costs have been deducted from total revenue.

Assets

Resources owned or controlled by a business or individual that have expected future economic benefit.

Equity

The value of an owner's interest in a company, calculated as the difference between the assets and liabilities on a company's balance sheet.

Cash Inflows

The total amount of money being received by a company, from operations, investments, and financing activities.