Application of the (Prudence) Conservatism Assumption Can Produce

question 34

Multiple Choice

Application of the (prudence) conservatism assumption can produce:

• A) higher amounts for liabilities.
• B) higher profits.
• C) lower amounts for expenses.
• D) higher values for assets.

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Definitions:

Dog

A domesticated carnivorous mammal that typically has a long snout, an acute sense of smell, non-retractable claws, and a barking, howling, or whining voice.

BCG

Refers to the Boston Consulting Group Matrix, a strategic planning tool that categorizes a company's business units or products into four categories (Stars, Cash Cows, Question Marks, and Dogs) based on market growth and market share.

SBU

Strategic Business Unit; a semi-autonomous component of a larger organization, often focused on a specific product line or market segment.

Growth-Share Matrix

A strategic business tool used to evaluate a company’s portfolio of products or business units on the basis of their growth potential and market share.