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:

Distress

Negative stress that results from adverse situations or challenges, causing anxiety or discomfort.

Self-Reliance

Dependence on one's own efforts and abilities; the quality of not needing support, help, or approval from others.

Personality Hardiness

A trait characterized by resilience and the ability to endure stressful situations effectively.

Supportive Attachments

Emotional and psychological bonds that provide individuals with a sense of security and support.