Which of the following statements is true about early codification of accounting rules?
A) In the early part of the twentieth century, there was limited work undertaken to codify particular accounting principles or rules
B) Accountants used rules which they were aware, and which they believed, were most appropriate to the particular circumstances
C) There was very limited uniformity between the accounting methods adopted by different organisations, thereby creating comparability problems.
D) All of the given options are correct

Question

Quizplus · Accepted Answer

All of the given options are correct. In the early part of the twentieth century, accounting rules were not codified, and accountants used their judgment to select methods that they believed were most appropriate. This lack of uniformity caused comparability problems.

Which of the Following Statements Is True About Early Codification