The Basic Purpose of Generally Accepted Accounting Principles Is To

question 39

Multiple Choice

The basic purpose of generally accepted accounting principles is to:

• A)Minimize the possibility of a business becoming insolvent.
• B)Provide a framework for financial reporting that is understood by both the preparers and the users of financial statements.
• C)Ensure that financial statements include the type of information that is best suited to every type of business decision.
• D)Eliminate the need for professional judgment in preparing financial statements.

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Definitions:

Negatively Stereotyped

Being viewed or categorized in an oversimplified and unfavorable way based on group membership.

Life Satisfaction

An individual's evaluation of their own life, in which they reflect upon their achievements and determine how closely those align with their life goals.

Anxiety

A feeling of worry, nervousness, or unease about something with an uncertain outcome, often characterized by physical symptoms.

Correlation

A statistical measurement that indicates the extent to which two or more variables fluctuate together.