CFA Practice Question

CFA Practice Question

Which of the following are considered when applying generally accepted accounting principles?

I. When income is recognized as earned.
II. When expenses and losses accrue.
III. When liabilities are incurred.
IV. How assets are measured.
A. I, II and III.
B. I, III and IV.
C. I, II, III and IV.
Explanation: The rules or standards of accounting determine such matters as how assets are measured, when liabilities are incurred, when income is recognized as earned, and when expenses and losses accrue.

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