The ________ Principle States That the Financial Statements of a Business

question 15

Multiple Choice

The ________ principle states that the financial statements of a business must report enough information for outsiders to make knowledgeable decisions about the business.

• A) consistency
• B) historical cost
• C) disclosure
• D) conservatism

---

Definitions:

Credit Policy

A set of guidelines a company follows to determine the creditworthiness of its customers and the terms of credit it will offer.

Contingent Demand

Demand for a product or service that depends on the demand for another product or service.

Custom Cabinets

Bespoke cabinetry designed and built to fit the specific measurements and requirements of a particular space.

Green Enterprises

Denotes businesses that prioritize environmental sustainability in their operations, products, or services, often with a focus on minimizing ecological impact.