The choice of accounting methods is made by:
A) Setters of accounting standards
B) Preparers of financial reports
C) Users of financial reports
D) Both A and B

Question

Quizplus · Accepted Answer

The choice of accounting methods is made by both setters of accounting standards and preparers of financial reports. Setters of accounting standards develop and issue guidelines and principles for accounting methods, while preparers of financial reports apply these guidelines and principles to create financial reports. Therefore, both parties play a role in the choice of accounting methods. Users of financial reports, on the other hand, rely on these reports to make decisions and do not have a direct role in choosing the accounting methods used.

The Choice of Accounting Methods Is Made By