[amp_mcq option1=”Conservative convention” option2=”Convention of disclosure” option3=”Convention of materiality” option4=”Arrear of book accounts” correct=”option2″]<\/p>\n
The correct answer is: B. Convention of disclosure<\/strong><\/p>\n Window dressing is the practice of manipulating financial statements to make a company appear more profitable or healthy than it really is. This can be done by delaying or accelerating the recognition of revenue or expenses, or by using accounting methods that are not in accordance with generally accepted accounting principles (GAAP).<\/p>\n The convention of disclosure requires companies to provide complete and accurate information about their financial condition and performance. This helps investors and other users of financial statements to make informed decisions about the company. Window dressing violates the convention of disclosure because it obscures the company’s true financial condition.<\/p>\n The other options are incorrect because:<\/p>\n [amp_mcq option1=”Conservative convention” option2=”Convention of disclosure” option3=”Convention of materiality” option4=”Arrear of book accounts” correct=”option2″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[85],"tags":[],"class_list":["post-45930","post","type-post","status-publish","format-standard","hentry","category-accounting","no-featured-image-padding"],"yoast_head":"\n\n