In 2005, the Lowest Quintile of Americans Made Less Than

question 42

True/False

In 2005, the lowest quintile of Americans made less than 4% of the national income.

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Definitions:

Net Realizable Value

The estimated selling price of goods minus the costs of their sale or disposal.

Conservatism Constraint

An accounting principle that provides guidance for uncertain conditions, advising to recognize expenses and liabilities sooner rather than later.

Historical Cost Principle

An accounting principle that states that assets should be recorded and reported at their original purchase cost.

Work in Process

Inventory that includes goods that are in the process of being manufactured but are not yet complete.