The Accounting Principle That Guides Accountants, When Faced with a Recognition

question 127

Multiple Choice

The accounting principle that guides accountants, when faced with a recognition dilemma, to choose the alternative that produces the lowest net income is referred to as

• A)the matching principle.
• B)internal control.
• C)conservatism.
• D)materiality.

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Definitions:

Language

A system of communication through the use of speech, symbols, or writing, used by a particular country or community.

Perceptiveness

The ability to notice or understand things that are not immediately obvious; keenness of insight or intuition.

Howard Gardner

An American developmental psychologist known for his theory of multiple intelligences, which suggests that individuals have various distinct types of intelligences.

Psychologists

Professionals specializing in the study of the mind and behavior, dealing with how people think, feel, and act.