Which If the Following Is an Advantage of Rules-Based Accounting

question 17

Multiple Choice

Which if the following is an advantage of rules-based accounting standards?

• A) Reduced complexity of standards
• B) Reduced opportunities for earnings management through judgements
• C) Can cover most situations
• D) Improve representational faithfulness of financial statements

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Definitions:

Standard Error of Estimate

Indicates the average distance that the observed values fall from the regression line, measuring the accuracy of predictions.

Estimated Values

Values computed from sample data that serve as approximations of population parameters.

Actual Values

The observed or measured values in a dataset, as opposed to predicted or estimated values.

Equal

Having the same value, quantity, or measure as another entity.