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:

Filibuster

A political tactic used in legislative assemblies to delay or prevent a vote on a proposal by speaking at length.

Senate

The upper house of the legislature in many countries, often responsible for reviewing and ratifying legislation.

President's Veto

The power of the President to reject a bill passed by the Congress, preventing its enactment into law unless overridden by a two-thirds vote in both houses.

Two-Thirds Vote

A voting requirement that demands a proposal must receive at least two-thirds of the vote to be accepted or passed, commonly used in legislative bodies for significant decisions.