For a particular entity's financial statements to be presented fairly in conformity with generally accepted accounting principles,it is not required that the principles selected:
A)Be appropriate in the circumstances for the particular entity.
B)Reflect transactions in a manner that presents the financial statements within a range of acceptable limits.
C)Present information in the financial statements that is classified and summarized in a reasonable manner.
D)Be applied on a basis consistent with those followed in the prior year.

Question

Quizplus · Accepted Answer

While it is generally preferred for accounting principles to be applied on a basis consistent with prior years, it is not an absolute requirement for the financial statements to be presented fairly in conformity with generally accepted accounting principles. A change in accounting principle or estimate may be necessary, and as long as it is properly disclosed and justified, it will not impede the fair presentation of the financial statements. Choices A, B, and C are all necessary criteria for financial statements to be presented fairly in conformity with generally accepted accounting principles.

For a Particular Entity's Financial Statements to Be Presented Fairly