Which of the Following Is a Constraint in Accounting

question 150

Multiple Choice

Which of the following is a constraint in accounting?

• A) Comparability.
• B) Cost.
• C) Consistency.
• D) Relevance.

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Definitions:

Ending Inventory

The cumulative worth of merchandise ready to be sold at the conclusion of a financial period.

Net Income

The total earnings of a company after all expenses and taxes have been deducted from revenues.

Inventory Turnover

A metric that demonstrates the frequency at which a firm's stock is sold and replenished within a certain timeframe, highlighting the effectiveness of its inventory control.

Cost of Goods Sold

Costs incurred directly from the production process of goods a company offers for sale.