A Company Decides to Ignore a Very Small Error in Its

question 28

Multiple Choice

A company decides to ignore a very small error in its inventory balance.This is an example of which of the following principles?

• A)Relevance principle
• B)Comparability principle
• C)Materiality concept
• D)Accounting conservatism

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Definitions:

Superego

The part of a person's mind that acts as a self-critical conscience, reflecting social standards learned from parents and teachers.

Self-Report Tests

Psychological tests and questionnaires where individuals provide data about themselves, which can be subject to biases but are valuable for measuring perceptions, attitudes, and certain aspects of mental health.

Projective Measures

Psychological assessment tools that involve presenting ambiguous stimuli to subjects, whose responses are believed to reveal their unconscious desires, motives, or conflicts.

Self-Efficacy

An individual’s belief in their own ability to succeed in specific situations or accomplish a task.