Final answer:
The statement that colonists were concerned with how tax money would be used rather than the principle of taxation itself is true. They wanted representation in Parliament and disagreed with taxation without their consent.
Step-by-step explanation:
The question relates to the attitudes of the colonists towards the principle of taxation by the British government prior to the American Revolution. The correct answer to the statement 'The colonists did not necessarily object to the principle of taxation, but rather how the tax money would be applied.' is a. True. The colonists' main issue was not with being taxed per se; they were more concerned with the lack of representation in the British Parliament and how the taxes were being used without their consent or benefit. This perspective was famously summarized in the phrase 'no taxation without representation.' The assertion that users of financial statements have coinciding interests and that public companies should use accounting principles that result in higher levels of reported income is a separate issue and does not directly relate to this historical context.