A Company Decides to Ignore a Very Small Error in Its

question 150

Multiple Choice

A company decides to ignore a very small error in its inventory balance.This is an example of the application of the ________.

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

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Definitions:

Document

A written, printed, or electronic record that provides information or evidence or that serves as an official record.

Internal Storage

The memory within a device used for storing data and applications permanently.

Computer

An electronic device designed to accept data, perform prescribed mathematical and logical operations at high speed, and display the results.

Modem

A device that modulates and demodulates signals for digital communication over telephone lines or other means.