The Conceptual Framework of Accounting

question 111

Multiple Choice

The conceptual framework of accounting

• A) ensures that existing standards and practices are clear and consistent.
• B) makes it possible to respond quickly to new issues.
• C) increases the usefulness of the financial information presented in financial reports.
• D) all of the above.

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Definitions:

FIFO

An inventory valuation method where the first items purchased or produced are considered the first sold, standing for First-In, First-Out.

Receiving Report

a document that records the details of goods received from a supplier, used to match against purchase orders and invoices.

Inventory Control

A system used to oversee and manage the ordering, storage, and use of inventory in a business.

Initial Record

Initial record refers to the first entry of a transaction into the accounting system. This record is crucial for maintaining the accuracy and integrity of financial data.