Which of the Following Is an Application of the Conservatism

question 101

Multiple Choice

Which of the following is an application of the conservatism concept?

• A)reporting inventory at the lower of cost or market
• B)reporting only material amounts in the financial statements
• C)reporting all relevant information in the financial statements
• D)using the same depreciation method from period to period

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Definitions:

DTC

Diagnostic Trouble Codes, codes generated by a vehicle's onboard diagnostics system to indicate a problem.

SAE

Society of Automotive Engineers, an organization that sets standards for engineering professionals in various industries, especially automotive.

Manufacturer-Specific

Pertaining to features, parts, or protocols that are unique to a particular brand or maker's products.

Fuel Trim

An adjustment to fuel delivery by the engine control module, based on input from the oxygen sensors.