You did not understand what the term accrual meant and failed to accrue the interest due at the end of the year on the company's bonds. Which IMA guideline has been violated?
A) Integrity
B) Confidentiality
C) Competence
D) Objectivity

Question

Quizplus · Accepted Answer

Failing to accrue the interest due at the end of the year on the company's bonds shows a lack of competence in accounting principles, which violates the IMA guideline of competence. Accrual refers to the recognition of revenues and expenses in the accounting records before the cash is received or paid out. The other guidelines of integrity, confidentiality, and objectivity are not directly related to this situation.

You Did Not Understand What the Term Accrual Meant and Failed