Intracompany Comparability Would Be Violated If

question 49

Multiple Choice

Intracompany comparability would be violated if

• A)a company used LIFO as its inventory cost method while other companies in the same industry used FIFO
• B)a company changed its bad debts expense estimate from one percent to two percent
• C)a bank did not classify its assets as current assets and noncurrent assets
• D)a company expenses all expenditures of less than $500 even if the expenditures result in probable future economic benefit

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Definitions:

Presuppositions

Implicit assumptions or beliefs that are taken for granted without being explicitly stated, serving as a foundation for reasoning and discourse.

Philosophers

Individuals dedicated to studying and exploring questions about existence, ethics, knowledge, and the mind.

Distributive Justice

The fair apportionment of goods and services.

Equality of Opportunity

The principle that all individuals should have the same chances to advance socially and economically, without discrimination or bias.