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:

Accounting Equation

The fundamental equation of double-entry bookkeeping: Assets = Liabilities + Shareholder's Equity, used to ensure that a company's financial statements are balanced.

Stockholder

An individual or entity that owns one or more shares of stock in a corporation, making them partial owners of the company.

Assets Increase

A situation where the value or volume of a company's assets rises due to acquisition or appreciation.

Operating Activities

Transactions and events that relate to the primary operations of the company, including cash received from customers and cash paid for expenses.