Which of the following arguments regarding principle-based standards is correct?
A)Contain bright-line tests
B)Have many exceptions
C)Are inconsistent with and derived from a conceptual framework
D)Present a concise explanation of the accounting objective and the integration of the objective into the standard

Question

Quizplus · Accepted Answer

Principle-based standards present a concise explanation of the accounting objective and the integration of the objective into the standard. They are also consistent with and derived from a conceptual framework. Bright-line tests are more associated with rules-based standards, and many exceptions are not necessarily a characteristic of either principle-based or rules-based standards.

Which of the Following Arguments Regarding Principle-Based Standards Is Correct