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:

Pints

A unit of volume used primarily in the United States and the British imperial system, equal to 16 fluid ounces or approximately 473 milliliters.

Cent

a unit of currency that represents 1/100th of the basic unit of currency in many countries, including the United States and the Eurozone.

Chocolate Syrup

A sweet, chocolate-flavored liquid or sauce often used as a topping for desserts and in beverages.

Gallons

A unit of volume measurement used primarily in the United States for quantifying liquids.