Each of the Following Statements Is Justified by a Concept

question 145

Essay

Each of the following statements is justified by a concept or convention of accounting.Write the name of the concept or convention that applies to each statement.
a.This convention best enhances comparability of financial statements between years.
b.A merger agreed on just after the balance sheet date nevertheless is reported in the notes to the financial statements.
c.A company forgoes hiring another full-time accountant,which would add only slightly to the financial statements' accuracy.
d.A company uses lower-of-cost-or-market to value inventory.
e.A large company rounds its financial statement figures to the nearest $10,000.

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Definitions:

Accidental Injury

Physical harm or damage to a person resulting from unexpected or unplanned actions or events.

Physical Dependence

A physiological state of adaptation to a specific substance, leading to withdrawal symptoms when that substance is reduced or stopped.

Hallucinations

Perceptions in the absence of external stimuli, such as seeing or hearing things that aren't there.

Stimulant

A substance that increases activity in the body or brain, often leading to enhanced alertness, energy, or physical performance.