Broad Concepts or Guidelines and Detailed Practices That Together Make

question 23

Multiple Choice

Broad concepts or guidelines and detailed practices that together make up accepted accounting practice at a given time are referred to as:

• A) accounting rules and regulations
• B) GAAP
• C) IRS regulations
• D) accounting conventions

---

Definitions:

Inventory

Inventory represents the goods and materials a company holds for the ultimate purpose of resale or processing in the production process.

Fair Value

The estimated market price of an asset or liability, reflecting the amount for which it could be exchanged in an arm's length transaction.