Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Accounting profit has several advantages compared to economic profits. The following are the Advantages of Accounting Profit, EXCEPT A. Historically acceptable for decision making because

Accounting profit has several advantages compared to economic profits. The following are the Advantages of Accounting Profit, EXCEPT

A. Historically acceptable for decision making because users still trust the benefits of accounting profits

B. Measured and reported objectively and can be verified

C. Meet the criteria of conservatism

D. Useful for control purposes, especially management accountability

E. Recognizing the increase in the value of unrealized assets in one period because of the historical cost principle and realization principle

Please Explain the right answer

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting

Authors: Karen BraunWendy Tietz

3rd Edition

0132890542, 978-0132890540

More Books

Students also viewed these Accounting questions

Question

Is this issue more complex than it seems?

Answered: 1 week ago

Question

1. Why do we trust one type of information more than another?

Answered: 1 week ago