A Company Decides to Ignore a Very Small Error in Their

question 48

Multiple Choice

A company decides to ignore a very small error in their inventory balance.This is an example of which of the following principles?

• A) Accounting conservatism
• B) Materiality concept
• C) Disclosure principle
• D) Consistency principle

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Definitions:

Atlantoaxial

Pertaining to the joint between the atlas (C1 vertebra) and the axis (C2 vertebra) that allows for the rotation of the head.

Cartilaginous Joints

Joints where the bones are attached by cartilage, allowing for more movement than fibrous joints but less movement than synovial joints.

Hyaline Cartilage

A translucent, bluish-white type of cartilage present in the joints, respiratory tract, and other sites, providing a smooth surface for joint movement as well as support and flexibility.

Fibrocartilage

A type of cartilage with a dense interwoven network of collagen fibers, providing strong support and resisting pressure.