Which Accounting Convention Describes a Note to the Financial Statements

question 144

Multiple Choice

Which accounting convention describes a note to the financial statements explaining the company's method of revenue recognition?

• A) Comparability and consistency
• B) Materiality
• C) Conservatism
• D) Full disclosure

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Definitions:

Labor

The human effort, both physical and mental, used in the production of goods and services.

Positive Economics

Positive Economics is the branch of economics that deals with the description and explanation of economic phenomena, focusing on factual and cause-and-effect relationships.

Economic Variables

Quantitative measures that represent aspects of the economy or a company and can change over time, such as GDP, inflation rate, and unemployment rate.

Policy Makers

Individuals or groups responsible for making decisions that affect the economy, society, or governance.