A Medical Laboratory Bought a Courier Vehicle in 2008 and Used

question 30

Multiple Choice

A medical laboratory bought a courier vehicle in 2008 and used a six-year depreciation schedule. The next year, the lab bought a similar vehicle and used a five-year depreciation schedule. This violates the accounting principle of ____.

• A) accuracy
• B) consistency
• C) materiality
• D) subsequent events

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Definitions:

Maximizing Current Profit

A business strategy that focuses on generating the highest possible profit in the short term, sometimes at the expense of long-term viability.

Pricing Objective

The financial and marketing goals a company aims to achieve through its pricing strategies.

Profit Goal

A profit goal is a target set by a business for the net income it aims to achieve within a specific period, often driving strategy and decision-making.

Achieving A Target Return

In finance and business, achieving a target return refers to the goal of obtaining a specific level of profit or return on investment over a given period.