Which of the Following Is a Conservative Accounting Practice

question 103

Multiple Choice

Which of the following is a conservative accounting practice?

• A)The use of a longer service life for depreciation.
• B)Waiting to record a litigation loss.
• C)Adjust the allowance for uncollectible accounts to a smaller amount.
• D)The write-down of overvalued inventory.

Realize the importance of a business plan's elements in securing financing.

Acknowledge the advantages and disadvantages of home-based businesses.

Grasp the criteria for small-business designation and related benefits.

Recognize the support role of the Small Business Administration (SBA) and Small Business Investment Companies (SBICs) in assisting small businesses.

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Definitions:

Thermodynamics

The branch of physics that deals with the relationships between heat, work, temperature, and energy.

Entropy

A measure of the disorder or randomness in a system, often associated with the Second Law of Thermodynamics, indicating the direction of spontaneous processes.

Energy

The quantitative property that must be transferred to an object in order to perform work on, or to heat, the object.

Recycled

The process of converting waste materials into new products, reducing the consumption of fresh raw materials and energy usage.