Which of the Following Accounting Policies Is an Example of Costs

question 62

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.
• E)None of the given answers.

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Definitions:

Double-Loop Learning

A learning process where, in addition to making adjustments based on errors, underlying policies and objectives are also questioned and potentially altered.

Organizational Learning

The process through which an organization acquires, develops, and transfers knowledge to improve its performance and adapt to the environment.

Point of View

A particular attitude or way of considering a matter, influencing how situations, facts, and events are interpreted.

Imperial Presidency

describes a U.S. presidency that operates without effective checks and balances from the other branches of government, typically seen during periods of war or national emergency, leading to an expansion of executive power.