Which of the Following Accounting Policies Is an Example of Costs

question 15

Multiple Choice

Which of the following accounting policies is an example of costs versus benefits constraint being exercised in the disclosure of financial information?

• A) Inventory is valued at lower of cost or market.
• B) Property, plant and equipment are appraised and revalued every three years.
• C) Biological assets are stated at fair value unless the fair value cannot be measured reliably.
• D) Research and development costs are expensed as incurred.

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Definitions:

Confidence Interval

A spectrum of statistical indicators, sourced from a sample, predicted to involve the secret value of a population parameter.

Normal Distribution

A bell-shaped probability distribution that is symmetric about the mean, showing that data near the mean are more frequent in occurrence than data far from the mean.

Confidence Interval

A selection of statistics, from analyzing samples, anticipated to house the covertly valued population parameter.

Standard Deviation

A statistic that denotes the dispersion or variability of a dataset relative to its mean, indicating how spread out the data points are.