Which of the Following Concepts States That a Company Must

question 58

Multiple Choice

Which of the following concepts states that a company must perform strictly proper accounting ONLY for significant items?

• A)Consistency principle
• B)Accounting conservatism
• C)Materiality concept
• D)Disclosure principle

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Definitions:

Cost Per Unit

The total expense incurred in manufacturing or acquiring a product divided by the number of units.

Purchased

Acquired in exchange for money or its equivalent; obtaining ownership of a good or service.

Days' Sales

A financial ratio that measures the average time it takes a company to convert its inventory into sales.

Ending Inventory

The total value of all inventory, including raw materials, work-in-progress, and finished goods, held by a company at the end of an accounting period.