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:

Extraneous Variable

Denotes any variable other than the independent variable that might cause unwanted changes in the outcome of an experiment.

Independent Variable

The variable that is manipulated or changed in an experiment to test its effects on the dependent variable.

Dependent Variable

In an experiment, the variable that is measured or tested and is expected to change as a result of manipulations to the independent variable.

Interrelated Ideas

Concepts or thoughts that are connected in such a way that they influence or impact each other.