Significant Accounting Policies May Not Be

question 13

Multiple Choice

Significant accounting policies may not be

• A) selected on the basis of judgment.
• B) selected from existing acceptable alternatives.
• C) unusual or innovative in application.
• D) omitted from financial-statement disclosure.

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Definitions:

Retailing

The process of selling consumer goods or services to customers through multiple channels of distribution to earn a profit.

Downward-Sloping

Characteristic of a graph or curve that shows a decrease in one variable as another variable increases, commonly seen in demand curves.

Marginal Revenue

The extra revenue earned by selling an additional unit of a product or service.

Demand Curve

A graphical representation showing the relationship between the price of a good and the amount of it that consumers are willing and able to purchase at each possible price.