Differences in legal systems used in various countries have been cited as one reason for diversity in accounting practice. What are the major types of legal systems?

Question

Quizplus · Accepted Answer

The major types of legal systems are common law and code law. Common law is based on prior court decisions, while code law is based on a set of written laws and regulations. These differences result in variations in accounting practices, such as in the way financial statements are prepared and reported. Other options (A, B, and C) are not accurate distinctions of legal systems.

Differences in Legal Systems Used in Various Countries Have Been