Which of the Following States That a Company Must Perform

question 37

Multiple Choice

Which of the following states that a company must perform strictly proper accounting only for items that are significant to the business's financial statements?

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

Understand the concept of net present value (NPV) and profitability index as methods of investment appraisal.

Learn the methodologies for calculating the discounted payback period.

Understand the concept and calculation of average accounting rate of return (AARR).

Grasp the importance of salvage value in investment appraisal.

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Definitions:

Bed-wetting

Involuntary urination during sleep, commonly seen in children.

Classical Conditioning

The mechanism of learning through the linkage of a natural stimulus and an environmental one.

Cravings

Intense desires or urges for a specific substance, experience, or activity, often associated with addiction or deprivation.

Counterconditioning

A behavior therapy technique involving the conditioning of an unwanted behavior or response to a stimulus into a desired behavior or response.