There Are Some Liabilities,such as Income Tax Payable,for Which the Amounts

question 30

Multiple Choice

There are some liabilities,such as income tax payable,for which the amounts must be estimated.Failure to estimate these amounts and record them would be a violation of the

• A)matching principle.
• B)convention of conservation.
• C)practice of consistency.
• D)concept of historical cost.

---

Definitions:

Price Level

The total average price level for all domestically produced goods and services.

Base Year

A specific year against which economic growth is measured, serving as a standard of comparison for other years.

National Income

National Income is the total income earned by the residents of a country, including wages, profits, rents, and taxes, minus subsidies, over a certain period of time, often used to assess the economic health of a country.

Wages

Compensation provided to workers for their efforts or tasks, usually determined based on hours worked, daily rates, or the amount of work completed.