Under Generally Accepted Accounting Principles, a Company Can Choose a Cost

question 16

Multiple Choice

Under generally accepted accounting principles, a company can choose a cost flow assumption for valuing cost of goods sold that can result in different income reporting. However, it can't frequently change the cost flow assumption adopted in order to measure the highest income possible because of the:

• A)conservatism principle.
• B)going concern principle.
• C)stable-dollar principle.
• D)consistency principle.

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