Which of the Following States That a Company Must Perform

question 37

Multiple Choice

Which of the following states that a company must perform strictly proper accounting only for items that are significant to the business's financial statements?

• A) conservatism
• B) materiality concept
• C) disclosure principle
• D) consistency principle

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Definitions:

Net Exports

The difference between the value of a country's exports and the value of its imports.

Saving

The act of putting money aside, typically in a secure place, for future use or investment.

Domestic Investment

The total capital expenditure on physical assets (like buildings, machinery, and equipment) within a country's borders to produce goods and services.

Net Capital Outflow

The net flow of funds invested abroad by a country, over a specific time period, typically calculated as the difference between domestic savings and investment.