The Conservatism Constraint Prescribes That

question 21

Multiple Choice

The conservatism constraint prescribes that:

• A)When multiple estimates of amounts to be received or paid in the future are equally likely,then the least optimistic amount should be used.
• B)A company use the same accounting methods period after period.
• C)Revenues and expenses are reported in the period in which they are earned or incurred.
• D)All items of a material nature are included in financial statements.
• E)All inventory items are reported at full cost.

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Definitions:

Emile Durkheim

A founding figure in the discipline of sociology, known for his contribution to the understanding of social order, social solidarity, and the function of religion in society.

Social Integration

The process by which individuals or groups are incorporated into the social structure, achieving a sense of belonging and participation in societal activities.

Industrial Revolution

A period of major industrialization that occurred during the late 1700s and early 1800s, resulting in significant technological, economic, and social changes.

Sociologists

Scholars and professionals who study social life, social change, and the social causes and consequences of human behavior.