An Account Principles Board Opinion Was Concerned with Disclosure of Accounting

question 30

Multiple Choice

An Account Principles Board Opinion was concerned with disclosure of accounting policies.A singular feature of this particular opinion is that it

• A)Calls for disclosure of every accounting policy followed by a reporting entity
• B)Applies to immaterial items whereas most opinions are concerned solely with material items
• C)Applies also to accounting policy disclosures by not-for-profit entities,whereas most opinions are concerned solely with accounting practices of profit-oriented entities
• D)Prescribes a rigid format for the disclosure of policies to be reported upon

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Definitions:

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock and often pays dividends at a fixed rate.

Dividends

Payments made by a corporation to its shareholder members, distributing a portion of the company's earnings.

Owners

Individuals or entities that possess legal rights and control over a business or asset.

Public Corporation

A Public Corporation is a company that has issued securities through an initial public offering (IPO) and is traded on at least one stock exchange or in the over-the-counter market.