There Are Several Ways the Recognition and Measurement Concepts Can

question 86

Multiple Choice

There are several ways the recognition and measurement concepts can be violated. Which one of the following would not necessarily be considered a violation?

• A) intentional misstatement of estimates
• B) failure to record a revenue or expense
• C) recognition of revenue or expense in the incorrect accounting period
• D) a change in an accounting policy

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Definitions:

Net Method

A method of recording purchases or invoices at their net price after deducting any purchase discounts.

Invoice Paid

A document or notation indicating that payment has been made for a particular invoice, clearing the amount owed.

Periodic Inventory Method

A method of inventory valuation where the cost of goods sold is determined at the end of an accounting period based on a physical count.

Voucher System

A control mechanism in accounting that uses vouchers to record transactions and ensure that every payment is properly authorized.