Why are there different acceptable ways to account for similar transactions?
A)To allow flexibility to deal with different economic circumstances.
B)To allow managers to enhance their bonuses.
C)To confuse the stakeholders.
D)Because the rule makers cannot agree on one best method.

Question

Quizplus · Accepted Answer

Different circumstances may require different accounting methods to accurately reflect the economic reality of the transaction. This flexibility allows for practical application of accounting standards. B and C are not valid reasons for the existence of different acceptable accounting methods, and D is partially true but does not fully explain the purpose of different methods.

Why Are There Different Acceptable Ways to Account for Similar