The Conservatism Constraint

question 194

Multiple Choice

The conservatism constraint:

• A)Requires that when more than one equally likely estimate of amounts is expected to be received or paid in the future,then the less optimistic amount should be used.
• B)Requires that a company use the same accounting methods period after period.
• C)Requires that revenues and expenses be reported in the period in which they are earned or incurred.
• D)Requires that all items of a material nature be included in financial statements.
• E)Requires that all inventory items be reported at full cost.

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Definitions:

Voltages

The potential difference in charge between two points in an electrical field, measured in volts.

Motors

Devices that convert electrical energy into mechanical energy.

Squirrel-Cage Rotor

A type of rotor in an induction motor, characterized by its cylindrical shape with conductive bars running the length of the cylinder and connected at both ends by conductive rings, creating a cage-like appearance.

Frequency

The number of cycles (of a repeating event) per unit time, measured in hertz (Hz) in the context of waves or electrical signals.