Which of the Following Is a Conservative Accounting Practice

question 30

Multiple Choice

Which of the following is a conservative accounting practice?

• A)The use of a longer service life for depreciation.
• B)Waiting to record a litigation loss.
• C)Adjust the allowance for uncollectible accounts to a smaller amount.
• D)The write-down of overvalued inventory.

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Definitions:

T-statistic

A ratio that is derived from the standardized difference between two sample means divided by the standard error of the difference, used in hypothesis testing.

Sample Mean

The average value computed from a sample set of data, representative of the population mean.

Hypothesized Population Mean

This is an assumed average of a particular characteristic in a population, used as a standard for hypothesis testing in statistical analysis.

Region of Rejection

The area in the tail(s) of a statistical distribution where, if a test statistic falls, the null hypothesis is rejected in favor of the alternative hypothesis.