For a particular entity's financial statements to be presented fairly in conformity with generally accepted accounting principles, it is not required that the principles selected:

Question

Quizplus · Accepted Answer

Choice "D" is correct. For a particular entity's FS to be presented fairly in conformity with GAAP, it is not required that the principles selected be applied on a basis consistent with those followed in the prior year, merely that any changes in accounting principle be properly accounted for and disclosed. Choice "A" is incorrect. The principles selected must be appropriate in the circumstances for the particular entity. Choice "B" is incorrect. The principles selected must reflect transactions in a manner that present the FS within a range of acceptable limits. Choice "C" is incorrect. The principles selected must present information in the FS that is classified and summarized in a reasonable manner.

For a Particular Entity's Financial Statements to Be Presented Fairly