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:

Recognize

To acknowledge or take notice of someone or something as being valid or important.

Nonwelded Texture

A characteristic of pyroclastic deposits where the individual particles are not fused together, indicating cooler temperatures during deposition.

Fine Particles

Tiny solid or liquid particles that are suspended in air or water, often referring to dust, soot, or other minute matter.