Which of the following is a characteristic of rules-based accounting standards?

a. They are highly detailed.
b. They rely heavily on judgment by management or the auditor.
c. They are shorter than rules-based standards.
d. They are required by Sarbanes-Oxley.


ANSWER: A

Business

You might also like to view...

A company purchased a new delivery van at a cost of $45,000 on July 1. The delivery van is estimated to have a useful life of 6 years and a salvage value of $3,000. The company uses the straight-line method of depreciation. How much depreciation expense will be recorded for the van during the first year ended December 31?

A. $4,000. B. $3,500. C. $7,000. D. $3,250. E. $6,500.

Business

In the final step of a marketing process, a company reaps the rewards of its strong customer relationships by capturing value from customers

Indicate whether the statement is true or false

Business

Which type of close is intended to motivate a prospect to act immediately?

A. Summary-of-benefits B. Alternative-choice C. Balance-Sheet D. Standing-room-only E. Compliment

Business

Which sentence contains a writing lapse?

a. Having completed its study, the committee presented a recommendation to the company's president. b. The committee cited three reasons they chose the site. c. The company's president was pleased with the committee's selection. d. The president is eager to move into a new building; construction will begin soon.

Business