a. A business should report the least favorable figures in the financial statements when two or more possible options are presented. 1. Conservatism 2. Materiality concept b. A business's financial statements must report enough information for outsiders to make knowledgeable decisions about the company. 3. Disclosure principle 4. Consistency principle c. A business should use the same accounting methods and procedures from period to period. d. A company must perform strictly proper accounting only for items that are significant to the business's financial situation.

a. A business should report the least favorable figures in the financial statements when two or more possible options are presented. 1. Conservatism 2. Materiality concept b. A business's financial statements must report enough information for outsiders to make knowledgeable decisions about the company. 3. Disclosure principle 4. Consistency principle c. A business should use the same accounting methods and procedures from period to period. d. A company must perform strictly proper accounting only for items that are significant to the business's financial situation.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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