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:

Means Testing

The procedure by which individuals' or households' income and/or assets are analyzed to determine eligibility for government assistance.

Welfare Programs

Governmental provisions designed to support the well-being of individuals and families through assistance measures like food stamps, Medicaid, and housing subsidies.

Federal Government

The national government of the United States, consisting of three branches: executive, legislative, and judicial, established by the Constitution.

State Governments

The government of an individual state in a federated country, which shares power with the federal government.