The Accounting Principle That Requires That the Cost Flow Method

question 161

Multiple Choice

The accounting principle that requires that the cost flow method be consistent with the physical movement of goods is

• A) called the expense recognition principle.
• B) called the consistency principle.
• C) nonexistent; that is, there is no accounting requirement.
• D) called the physical flow assumption.

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Definitions:

Prefrontal Cortex

A region of the brain associated with decision making, cognitive behavior, personality expression, and moderating social behavior.

Anterior Cingulate

A part of the brain involved in a wide range of functions, including emotion, decision-making, and impulse control.

Cognitive Theorists

Psychologists or researchers who study how mental processes such as perception, memory, and reasoning influence behavior.

Ruminative Response

A pattern of behavior where an individual persistently focuses on the symptoms of their distress, and on its possible causes and consequences, instead of solutions.