Which of the Following States That the Business Should Use

question 132

Multiple Choice

Which of the following states that the business should use the same accounting methods from period to period?

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

Comprehend the calculation of the cash cycle and its importance in corporate finance.

Learn how to calculate the accounts receivable period.

Understand how inventory management and turnover rates impact the operating cycle.

Determine the impact of changes in inventory, receivables, and payables periods on the operating and cash cycles.

---

Definitions:

Business Leaders

Individuals in positions of authority within companies who are responsible for decision-making and strategic direction.

Bounded Rationality

A theory proposing that people base their choices on the restricted data they have access to and within the limitations of their cognitive abilities.

Availability Phenomena

A cognitive bias where individuals give undue weight to information that is readily available to them when making decisions.

Limited Search

The process of looking for information or solutions with restrictions, often due to time, resources, or access limitations.