Which of the Following Is Not a Consequence of the Standards

question 7

Multiple Choice

Which of the following is not a consequence of the standards overload problem to small businesses?

• A) If a small business omits a GAAP requirement from audited financial statements, a qualified or adverse opinion may be rendered.
• B) Small businesses do not need to keep financial records
• C) The cost of complying with GAAP requirements may cause a small business to forgo the development of other, more relevant information.
• D) Small CPA firms that audit smaller companies must keep up to date on all the same requirements as large international firms, but they cannot afford the specialists that are available on a centralized basis in the large firms.

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Definitions:

Piaget's

Relates to the theories of cognitive development proposed by the Swiss psychologist Jean Piaget, which describe how children's intellectual abilities evolve as they grow.

Guilford's Model

A theory of human intelligence by J.P. Guilford that classifies intelligence into operations, contents, and products.

Cognitive Ability

Refers to the capacity of the brain to think, learn, reason, solve problems, and process information.

Cube

A three-dimensional geometric figure with six equal square faces.