Each of the Following Statements Is Justified by a Concept

question 82

Essay

Each of the following statements is justified by a concept or convention of accounting. Write the letter in the blank next to each statement corresponding to the concept or convention involved.
a. Consistency
b. Materiality
c. Conservatism
_____ 1. This convention best enhances comparability of financial statements between years.
_____ 2. A merger agreed on just after the balance sheet date nevertheless is reported in the notes to the financial statements.
_____ 3. A company forgoes hiring another full-time accountant, which would add only slightly to the financial statements' accuracy.
_____ 4. A company uses lower-of-cost-or-market to value inventory.
_____ 5. A large company rounds its financial statement figures to the nearest $10,000.
d. Full disclosure
e. Cost-benefit

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Definitions:

Presentation Introduction

The initial portion of a presentation designed to grab attention, introduce the topic, and outline the objectives.

Audience

The group of people for whom content is created, aiming to inform, entertain, persuade, or reach them in some way.

Cultural Differences

The variety of distinct beliefs, behaviors, and practices observed among different societies or ethnic groups.

Presentation Style

The method or manner in which information is shown or communicated to an audience, impacting reception and understanding.