Accounting principles and policies:
A) were designed to provide some degree of choice to management.
B) are"one-size-fits-all" to ensure comparability between companies.
C) preclude using GAAP compliant alternatives to manage income.
D) None of the choices are correct.

Question

Quizplus · Accepted Answer

Accounting principles and policies offer a range of choices to management, allowing for flexibility in how financial information is presented within the framework of generally accepted accounting principles (GAAP). This flexibility can be used to reflect the company's financial status more accurately or, in some cases, to manage income.

Accounting Principles and Policies