One of the advantages of principles-based standard is:

Question

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Principles-based standards are generally simpler than rules-based standards, as they provide a framework for accounting rather than strict guidance on how to handle every situation. This allows for more professional judgement in applying the principles to specific accounting scenarios. Choice A is incorrect because principles-based standards do allow for professional judgement. Choice C is incorrect because principles-based standards can improve representational faithfulness by allowing for a more holistic and comprehensive approach to accounting.

One of the Advantages of Principles-Based Standard Is