Accounting changes may be Multiple Choice O mandatory. voluntary. voluntary or mandatory. Predetermined.

Which of the following is not a criterion that must be met for an item to be classified as a liability? A certain cash payment will occur in the future. A sacrifice will require the entity’s assets or services. There is a probable future sacrifice. There is a present obligation that results from a past transaction.

Of the following reporting assumptions or reporting principles, the one most widely criticized is the a. consistency principle b. full-disclousure principle c. entity assumption d. historical cost principle

Which of the following is true?a. FASB creates SEC.b. GAAP creates FASB.c. SEC creates CPA.d. FASB creates GAAP.