Which of the Following Concepts Was Referred to as a Convention

question 21

Multiple Choice

Which of the following concepts was referred to as a convention in SFAC No. 2?

• A)Consistency
• B)Materiality
• C)Comparability
• D)Conservatism

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Definitions:

Socially Optimal Price

A price level for goods or services that is considered the most beneficial for society as a whole, taking into account both private and external costs and benefits.

Resource Allocation

The process of distributing available resources among various competing needs or projects in an efficient manner.

Unregulated Monopolist

An unregulated monopolist refers to a monopoly that operates without government intervention, setting prices and output levels without regulatory constraints.

Nondiscriminating

A principle or policy of treating all people equally, without unfair bias or discrimination.