The Conservatism Constraint Requires That

question 20

Multiple Choice

The conservatism constraint requires that:

• A)When more than one equally likely estimate of the amount to be received or paid in the future exists, the less optimistic amount should be used.
• B)A company use the same accounting methods period after period.
• C)Revenues and expenses be reported in the period in which they are earned or incurred.
• D)All items of a material nature be included in financial statements.
• E)All inventory items be reported at full cost.

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Definitions:

EPSPs

Excitatory Postsynaptic Potentials, which are temporary increases in postsynaptic membrane potential caused by the flow of positively charged ions into the postsynaptic cell.

IPSPs

Inhibitory Postsynaptic Potentials (IPSPs) are synaptic potentials that make a postsynaptic neuron less likely to generate an action potential.

Neuronal Membrane

The lipid bilayer that surrounds a neuron, maintaining the ionic environment essential for neurotransmission.

Distant Dendrite's Tree

The elaborate branching structure at the end of a neuron's axon, allowing for connections with other neurons.