Which One of the Following Is Most Likely Violated If

question 33

Multiple Choice

Which one of the following is most likely violated if a firm increases the dollar amount reported for unsold inventory on the balance sheet to a cost it anticipates it will have to pay for future inventory items?

• A)Consistency
• B)Conservatism
• C)Going concern
• D)Economic entity

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Definitions:

National Securities

Financial instruments issued by a government to finance its activities, often including bonds and treasury notes.

Publicly Held

A business with securities traded on public markets, allowing for public investment.

Privately Held

A description of a company whose ownership is private, meaning its shares are not traded on public stock exchanges.

Legal Costs

Legal Costs are expenses related to legal services such as attorney fees, court fees, and other expenditures incurred in the process of legal advice, litigation, or legal settlement.