Principles-based GAAP is sometimes criticized for being
A)Too inflexible.
B)Too flexible
C)Too inconsistent
D)None of these

Question

Quizplus · Accepted Answer

Principles-based GAAP is criticized for being too flexible because it relies on general principles rather than specific rules, leaving room for interpretation and potentially resulting in inconsistent application across different entities. This flexibility can also make it difficult for users of financial statements to compare entities or identify specific accounting treatments.

Principles-Based GAAP Is Sometimes Criticized for Being