The lower-of-cost-or-market method of accounting for inventories follows the convention of
A) full disclosure.
B) materiality.
C) conservatism.
D) cost-benefit.
C
You might also like to view...
Interest expense is reported in the operating expense section of the income statement
a. True b. False Indicate whether the statement is true or false
Which element below is part of the job characteristics model?
A. job simplification B. task significance C. authority D. merit pay
A seller of goods can easily associate (or match) the consumption of the benefits of the asset sold with revenues from its sale. At the time of sale and revenue recognition, the seller
a. removes the asset (inventory) from the seller's balance sheet. b. recognizes revenue. c. recognizes a reduction in an asset (inventory). d. records the cost of goods sold expense in the same amount by which inventory decreases. e. All of the answer choices are correct.
In a debit card system, the _____
a. customer can either pay the full amount due immediately or defer payment b. customer is not billed until his or her billing cycle date c. retailer still has the risk of customer nonpayment d. purchase price is automatically deducted from a consumer's bank account and then entered into the retailer's account through a computer terminal