A Severe Cold Snap May Affect This Year's Crop of Florida's

question 52

Multiple Choice

A severe cold snap may affect this year's crop of Florida's citrus growers.The potentially adverse affect is disclosed in the financial statements of the citrus growers.This practice can be best described as an application of

• A)The derecognition of financial statement elements
• B)The full disclosure principle
• C)The going concern assumption
• D)The economic entity assumption

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Definitions:

Missed Opportunity

The failure to seize potential benefits due to lack of action or decision in a timely manner.

Government Quota

A limit set by a government on the amount or value of a good that can be imported or exported over a specified period.

Supply Price

The price of a given quantity at which producers will supply that quantity.

Quota Limit

The total amount of a good under a quota or quantity control that can be legally transacted.