What is the consistency principle?
a) all the companies in an industry should use the same accounting procedure
b) a company can change an accounting principle as often as it wants
c) once chosen, the same accounting method should be applied in all periods
d) a company can change an accounting method for any reason
Answer: C
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Accounting 200
- Which of the following would be depleted?
- Which of the following is not included in the land account value of an acquired piece of land?
- Factors that affect the market price of bonds include all of the following except:
- Which of the following may be a contingent liability?
- Who determines the price at which bonds will sell?
- Which of the following is not true of contingent liabilities?
- GAAP requires that intangible assets be amortized over a period not to exceed how many years?
- What is the fair market value of an item?
- Which inventory system lets a company know exactly how much of a product is in inventory at any point in time?
- Why does a company reconcile its bank statement?
- Which of the following is not considered a type of long-lived asset?
- The costing method that deals with inventory items that may be identified individually is:
- Internal controls included all of the following except:
- Under the direct write-off method of accounting for uncollectible accounts (bad debts), when a specific account is written off:
- The small amount of cash held on hand to pay minor expenses is known as:
- Factoring is:
- Which if the following would not cause an adjustment to gross inventory after a purchase occurs?
- Why would a company want to estimate its inventory ?
- Which of the following would NOT be considered an intangible asset:
- Which of the following would be amortized?
- What is the IRS rule of the LIFO conformity?
- Which of the following is not considered a type of long-lived asset?
- Which of the following would be amortized?
- Which of the following is not an intangible asset?
If the answers is incorrect or not given, you can answer the above question in the comment box. If the answers is incorrect or not given, you can answer the above question in the comment box.