Which of the following accounting conventions would an accountant most likely apply when facing major uncertainties?
A) Understandability
B) Conservatism
C) Materiality
D) Verifiability
B
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A steady state is a situation in which the key variables in the model
A. are constant or else growing at a constant rate. B. are growing at a decreasing rate. C. are endogenous. D. measure zero.
Firms engage in transactions involving derivatives. For the most part, the complex parts of these transactions occur _____, but those transactions do _____ until, possibly, their settlement
a. after the firm has acquired the derivative; not affect cash flows b. before the firm has acquired the derivative; not affect cash flows c. when the firm has acquired the derivative; not affect cash flows d. after the firm has acquired the derivative; not affect net income e. before the firm has acquired the derivative; not affect net income
Which of the following is/are not true?
a. U.S. GAAP and IFRS do not permit the employer to prepare consolidated financial statements with the retirement trust. b. The employer must report the net funded status of each defined benefit retirement plan (that is, the fair value of retirement trust assets minus the retirement trust obligation) as a retained earnings reserve on its balance sheet. c. The employer must report the net funded status of each defined benefit retirement plan and credit (for an overfunded plan) or debit (for an underfunded plan) is to Other Comprehensive Income. d. Notes to the financial statements provide information about investments made by the retirement trust and how trust assets and liabilities changed during a period. e. all of the above
Most department stores seek multiple market segments when they provide several distinctive boutiques
Indicate whether the statement is true or false