A Company Decides to Ignore a Very Small Error in Their

question 111

Multiple Choice

A company decides to ignore a very small error in their inventory balance. This is an example of application of the:

• A)accounting conservatism.
• B)materiality concept.
• C)disclosure principle.
• D)consistency principle.

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Definitions:

Failure Rate

The proportion or frequency at which an event, such as an error or breakdown, occurs within a specific period or among a specified set of entities.

Strategic Leadership

Leadership that involves making decisions that enhance the prospects for long-term success of the organization, while maintaining financial stability.

Succession Plan

A strategy devised by organizations to identify and develop individuals to fill key leadership positions in the future, ensuring continuity and minimizing disruptions.

First-Mover Advantage

The competitive edge gained by a company that is the first to enter a particular market with a product or service.