Which of the following is an argument in favour of a GAAP body of knowledge that is more prescriptive, or rules-based?
A. It always emphasizes communicating the best information for users.
B. The body of knowledge becomes significantly smaller and therefore easier to manage.
C. It may be easier to defend how to account for a particular item.
D. There is a tendency for companies to interpret guidelines loosely, and thus account for items inconsistently.
Answer:C
Which of the following is an argument in favour of a GAAP body of knowledge that is more prescriptive, or rules-based?
A. It always emphasizes communicating the best information for users. B. The body of knowledge becomes significantly smaller and therefore easier to manage. C. It may be easier to defend how to account for a particular item. D. There is a tendency for companies to interpret guidelines loosely, and thus account for items inconsistently.