Which of the Following Accounting Concepts/principles Is Most Significant in the Development

question 45

Multiple Choice

Which of the following accounting concepts/principles is most significant in the development of a capitalization policy?

• A)Matching of revenue and expense.
• B)Materiality.
• C)Original Cost.
• D)Consistency.

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Definitions:

Reality Principle

A psychoanalytic concept where the ego seeks to satisfy the id's desires in realistic and socially appropriate ways.

Morality Principle

The concept that individuals have an inherent understanding of right and wrong that guides their behavior.

Conscience Principle

The ethical guideline that one's actions should be guided by conscience, reflecting an internal sense of right and wrong.

Cognitive Theories

Psychological theories that emphasize mental processes such as thinking, perception, and information processing in understanding behavior.