Which of the Following States That a Company Must Perform

question 37

Multiple Choice

Which of the following states that a company must perform strictly proper accounting only for items that are significant to the business's financial statements?

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

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Definitions:

Labor

Tasks undertaken by individuals that aid in generating goods and services within an economy.

Capital

Financial assets or the financial value of assets, such as funds held in deposit accounts, as well as the physical factors of production including machinery and buildings.

Circular-Flow Diagram

A visual model of the economy that shows how dollars flow through markets among households and firms, illustrating the interactions between different sectors of economic activity.

Circular-Flow Diagram

A graphical representation of the economic system that illustrates the movement of money through markets between families and businesses.