A Recall on Spinach Potentially Contaminated with Yersinia Enterocolitica Occurs

question 15

Essay

A recall on spinach potentially contaminated with Yersinia enterocolitica occurs.Sally hears about the recall but has kept her spinach in the refrigerator.She figures that even if her spinach had been contaminated,the organism will not grow in the refrigerator.Therefore,the number of organisms present will be so small that even if her spinach is contaminated,she will not be affected.Is Sally correct? Explain.

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Definitions:

GAAP

Generally Accepted Accounting Principles, a collection of commonly-followed accounting rules and standards for financial reporting.

R&D Costs

Expenses associated with the research and development of a company's goods or services, often considered an investment in a company's future.

Historical Cost Principle

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

Comparability

A financial accounting principle that allows the financial statements of multiple periods or companies to be comparable with each other.