The Basic Assumptions of Accounting Used by the International Accounting

question 84

Multiple Choice

The basic assumptions of accounting used by the International Accounting Standards Board (IASB) include

• A) Neutrality.
• B) Periodicity.
• C) Understandability.
• D) Materiality.

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Definitions:

Sales-Type Lease

A lease agreement where the lessor recognizes profit or loss through the sale of an asset under lease as if it were a normal sale.

Residual Value

The estimated amount that an asset will be worth at the end of its useful life.

Perpetual Inventory System

The perpetual inventory system continuously updates inventory records for each purchase and sale, providing a real-time view of inventory levels.

Marketing Tool

Any strategy, method, or resource used by companies to promote their products or services and increase market share.