The Private Sector Organization Involved in Developing Accounting Principles Is

question 35

Multiple Choice

The private sector organization involved in developing accounting principles is the

• A) Feasible Accounting Standards Body.
• B) Financial Accounting Studies Board.
• C) Financial Accounting Standards Board.
• D) Financial Auditors' Standards Body.

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Definitions:

Replacement Cost

The current cost of replacing an asset with a similar new asset at prevailing market prices.

Cost Flow Method

An accounting technique used to value inventory by determining how costs move through different accounts.

Gross Profit Method

An inventory valuation method estimating the cost of goods sold and ending inventory based on gross margin percentages.

Gross Profit Ratio

A metric that shows the proportion of money left over from revenues after accounting for the cost of goods sold.