What is meant by Germany's "authoritative principle?"
A)The GASB is the final authority for accounting standards.
B)The International Accounting Standards Board is the authority for making German GAAP.
C)Financial accounting is the basis for determining tax.
D)Accounting standards are derived from tax law.

Question

Quizplus · Accepted Answer

The "authoritative principle" in Germany means that financial accounting serves as the basis for determining taxable income, aligning financial and tax accounting.

What Is Meant by Germany's "Authoritative Principle