In a rules-based approach (such as U.S. GAAP), compared to a principles-based approach (such as Canadian GAAP),
A. the body of knowledge is smaller.
B. the importance of communicating the best information to users is emphasized.
C. since it is more prescriptive, it may be easier to defend how to account for a particular item.
D. companies frequently do not interpret the rules literally.
Answer:C
In a rules-based approach (such as U.S. GAAP), compared to a principles-based approach (such as Canadian GAAP),
A. the body of knowledge is smaller. B. the importance of communicating the best information to users is emphasized. C. since it is more prescriptive, it may be easier to defend how to account for a particular item. D. companies frequently do not interpret the rules literally.