{"id":51193,"date":"2024-04-15T23:21:18","date_gmt":"2024-04-15T23:21:18","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=51193"},"modified":"2024-04-15T23:21:18","modified_gmt":"2024-04-15T23:21:18","slug":"which-of-the-following-statement-is-true-statement-1-financial-statements-are-prepared-on-the-basis-of-accounting-principles-statement-2-any-changes-in-accounting-principles-or-method-will-affect","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/which-of-the-following-statement-is-true-statement-1-financial-statements-are-prepared-on-the-basis-of-accounting-principles-statement-2-any-changes-in-accounting-principles-or-method-will-affect\/","title":{"rendered":"Which of the following statement is true? Statement 1: Financial statements are prepared on the basis of accounting principles. Statement 2: Any changes in accounting principles or method will affect the utility of the financial statements."},"content":{"rendered":"<p>\r\n    <!-- Check if it's an AMP page -->\r\n            <!-- Non-AMP version -->\r\n        <div class=\"mcq-container\" data-quiz-id=\"quizState_6a97f08439178\">\r\n                                            <div class=\"option\" data-option-key=\"option1\" data-is-correct=\"false\">\r\n                    1 is true, but 2 is false                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option2\" data-is-correct=\"false\">\r\n                    2 is true, but 1 is false                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option3\" data-is-correct=\"true\">\r\n                    Both 1 and 2 are true                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option4\" data-is-correct=\"false\">\r\n                    Both 1 and 2 are false                <\/div>\r\n                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            \r\n            <!-- Feedback messages for non-AMP -->\r\n            <div class=\"feedback\" data-feedback=\"wrong\">Answer is Right!<\/div>\r\n            <div class=\"feedback\" data-feedback=\"right\">Answer is Wrong!<\/div>\r\n        <\/div>\r\n\r\n        <script>\r\n        document.addEventListener('DOMContentLoaded', function () {\r\n            var containers = document.querySelectorAll('.mcq-container');\r\n\r\n            containers.forEach(function(container) {\r\n                var options = container.querySelectorAll('.option');\r\n                var feedbackSelect = container.querySelector('[data-feedback=\"select\"]');\r\n                var feedbackWrong = container.querySelector('[data-feedback=\"wrong\"]');\r\n                var feedbackRight = container.querySelector('[data-feedback=\"right\"]');\r\n\r\n                options.forEach(function(option) {\r\n                    option.addEventListener('click', function() {\r\n                        var selectedOption = option.getAttribute('data-option-key');\r\n                        var isCorrect = option.getAttribute('data-is-correct') === 'true';\r\n\r\n                        \/\/ Remove previous selections\r\n                        options.forEach(function(opt) {\r\n                            opt.classList.remove('correct', 'incorrect');\r\n                        });\r\n\r\n                        \/\/ Add the correct\/incorrect class\r\n                        if (isCorrect) {\r\n                            option.classList.add('correct');\r\n                            feedbackRight.hidden = false;\r\n                            feedbackWrong.hidden = true;\r\n                        } else {\r\n                            option.classList.add('incorrect');\r\n                            feedbackRight.hidden = true;\r\n                            feedbackWrong.hidden = false;\r\n                        }\r\n\r\n                        \/\/ Hide select feedback\r\n                        feedbackSelect.hidden = true;\r\n                    });\r\n                });\r\n            });\r\n        });\r\n        <\/script>\r\n    \r\n    <!--more--><\/p>\n<p>The correct answer is C. Both 1 and 2 are true.<\/p>\n<p>Statement 1 is true because financial statements are prepared on the basis of accounting principles. These principles are set by the Financial Accounting Standards Board (FASB) and are designed to provide a consistent and reliable framework for reporting financial information.<\/p>\n<p>Statement 2 is also true because any changes in accounting principles or method will affect the utility of the financial statements. This is because changes in accounting principles can make it difficult to compare financial statements from different periods. Additionally, changes in accounting methods can make it difficult to compare financial statements from the same period.<\/p>\n<p>Therefore, both statements are true.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Subscribe on YouTube<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[952],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Which of the following statement is true? Statement 1: Financial statements are prepared on the basis of accounting principles. 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