German accounting standards have a “reverse authoritative principle.” What does this mean?
A. Reversing entries must be made before financial reports can be issued to the public.
B. Only tax deductible expenses may be used for determining accounting income.
C. Financial statements are the basis for taxation.
D. None of the above.
Answer:B
German accounting standards have a “reverse authoritative principle.” What does this mean?
A. Reversing entries must be made before financial reports can be issued to the public. B. Only tax deductible expenses may be used for determining accounting income. C. Financial statements are the basis for taxation. D. None of the above.