If a Company Has Not Recorded a Significant Write Off

question 92

Multiple Choice

If a company has not recorded a significant write off of inventory in the financial statements, which principle has been violated?

• A) Conservatism
• B) Consistency
• C) Materiality
• D) Entity
• E) cost principle

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Definitions:

Reserve Requirements

Regulations set by central banks requiring commercial banks to hold a certain percentage of their deposits in reserve as cash in their vaults or as deposits with the central bank.

President of the United States

The head of state and head of government of the United States, elected to a four-year term and serving as the executive leader of the federal government and commander-in-chief of the United States Armed Forces.

Board of Governors

The Board of Governors is the executive leadership of a central bank or other regulatory institution responsible for setting policies, overseeing operations, and guiding the organization’s objectives.

Board of Governors

The leading body of a central bank or other regulatory institution, responsible for overseeing its operations and making key decisions.