Which of the Following Is NOT an Example of Applying

question 124

Multiple Choice

Which of the following is NOT an example of applying conservatism in accounting?

• A) Recording contingent losses that are probable.
• B) Expensing all research and development costs are they are incurred.
• C) Using the lower-of-cost-or-market rules for inventory accounting.
• D) Increasing the useful life used in calculating depreciation.

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Definitions:

Pleural Effusion

The accumulation of excess fluid between the layers of the pleura, the membrane that lines the chest cavity and surrounds the lungs.

Pleural Cavity

The thin fluid-filled space between the two pleural membranes surrounding each lung, providing lubrication during breathing.

Pleura

The thin, protective membranes surrounding the lungs and lining the inner chest wall, facilitating smooth movement of the lungs during breathing.

Pleurisy

An inflammation of the pleurae, which are the layers of tissue lining the lungs and inner chest wall, often causing sharp chest pain with breathing.