Kent Company Has Used the Same Inventory Method for Many

question 25

Multiple Choice

Kent Company has used the same inventory method for many years.This is an example of which principle?

• A)Matching
• B)Realization
• C)Cost
• D)Consistency

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Definitions:

Tax Authority

A governmental entity responsible for the administration of taxes, including collection, enforcement, and interpretation of tax laws.

Legislative

Pertaining to the branch of government responsible for creating laws.

Private Letter Rulings

Issued by the IRS, these are written decisions provided to taxpayers, offering guidance on the tax treatment of complex transactions.

Tax Treatment

The specific way tax laws apply to different types of income, expenses, and individuals.