Which of the Following Principles States That a Business Should

question 47

Multiple Choice

Which of the following principles states that a business should not report anticipated gains?

• A) conservatism
• B) materiality concept
• C) disclosure
• D) consistency

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Definitions:

Factory Supplies

Materials and items used in a factory that do not directly go into a finished product but are necessary for manufacturing processes.

Factory Overhead

All indirect costs associated with the manufacturing process, including but not limited to utilities, maintenance, and management salaries, excluding direct labor and materials.

Advertising Expense

Costs incurred in promoting products, services, or the brand itself through various media channels.

Selling

The process of persuading customers to purchase goods or services from a company.