The Accounting Concept/principle Being Applied When an Adjustment Is Made

question 29

Multiple Choice

The accounting concept/principle being applied when an adjustment is made is usually:

• A)matching revenue and expense.
• B)consistency.
• C)original cost.
• D)materiality.

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Definitions:

Beginning Work in Process Inventory

The value of partially finished goods at the start of an accounting period.

Assembly Department

A section within a manufacturing facility where components are assembled into finished goods.

Conversion Costs

Costs incurred during the transformation of raw materials into finished goods, including labor and overhead.

Weighted-Average Method

This approach to inventory valuation calculates both the cost of goods sold and the closing inventory value using the mean cost of all saleable units during the period.