An Accountant's Violation of Generally Accepted Accounting Principles Is Prima

question 26

True/False

An accountant's violation of generally accepted accounting principles is prima facie evidence of negligence.

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Definitions:

Consignor

The person or entity that owns goods on consignment and sends them to the consignee for sale or display.

Days' Sales in Inventory

A financial metric that measures the average number of days it takes for a company to sell its entire inventory during a given period.

Consignee

The individual or entity to whom goods are shipped to be sold on behalf of the owner, retaining no legal ownership until sales occur.

Expense Recognition Principle

An accounting principle that dictates that expenses should be recognized in the period in which they are incurred to generate revenues, matching expenses against revenues in the period in which the revenue was earned.