• 2022-06-07
    Which one of the following statements regarding systems of regulation of accounting is true?
    A: A principles-based system will require more detailed regulations than a rules-based system.
    B: A rules-based system will tend to give rise to a smaller number of accounting standards than a principles-based system.
    C: A principles-based system seeks to cover every eventuality.
    D: A principles-based system requires the exercise of more judgement in application than a rules-based system.