Each of the Following Statements Violates a Concept or Convention

question 142

Essay

Each of the following statements violates a concept or convention of accounting.Write the name of the concept or convention that is violated.
a.A note to the financial statements indicating a change in inventory methods is omitted.
b.When management is unsure of which estimates to use in a given situation,the estimate resulting in the largest net income is always used.
c.In 2012,a company uses straight-line depreciation and in 2013 the company uses declining-balance depreciation.
d.A small company expenses all expenditures under $10,000.
e.A small company purchases a $50,000 computer to save $3,000 per year in bookkeeping wages.

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Definitions:

Physical Medicine

A branch of medicine that aims to enhance and restore functional ability and quality of life to those with physical impairments or disabilities.

Abbreviation

A contracted version of a word or phrase.

Musculoskeletal

Relating to or involving the muscles and the skeleton.

Abbreviation

A shortened form of a word or phrase, used to save space or for convenience.