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:

Gas Exchange

The process by which oxygen is taken into the body and an exchange of carbon dioxide is expelled, primarily occurring in the lungs.

Leaf Primordia

Young, undeveloped leaves that are in the earliest stages of growth, found in the buds of plants.

Apical Meristem

Regions of rapidly dividing cells in plants located at the tips of roots and shoots, responsible for primary growth and elongation.

Terminal Bud

Bud that develops at the apex of a shoot.