Changing from the LIFO (Last-In,First-Out)to the Specific Identification Method of Valuing

question 12

Multiple Choice

Changing from the LIFO (Last-In,First-Out) to the specific identification method of valuing inventory ignores the principle of ________.

• A)conservatism
• B)consistency
• C)disclosure
• D)materiality

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Definitions:

Respondeat Superior

A legal doctrine holding an employer or principal legally responsible for the wrongful acts of an employee or agent, under certain conditions.

Vicarious Liability

A legal principle that holds one party responsible for the actions of another under certain conditions, typically within employment contexts.

Doctrine

A principle, theory, or policy adopted and adhered to by an individual, group, or institution, often in a legal or philosophical context.

Professional Corporations

A type of corporation for professionals where the company's owners are shielded from certain liabilities and it is taxed differently than traditional corporations.