Each of the following statements is justified by a concept or convention of accounting.Write the letter in the blank next to each statement corresponding to the concept or convention involved.
_____ 1.This convention best enhances comparability of financial statements between years.
_____ 2.A merger agreed on just after the balance sheet date nevertheless is reported in the notes to the financial statements.
_____ 3.A company forgoes hiring another full-time accountant,which would add only slightly to the financial statements' accuracy.
_____ 4.A company uses lower-of-cost-or-market to value inventory.
_____ 5.A large company rounds its financial statement figures to the nearest $10,000.

Question

Each of the following statements is justified by a concept or convention of accounting.Write the letter in the blank next to each statement corresponding to the concept or convention involved.
  _____ 1.This convention best enhances comparability of financial statements between years.
_____ 2.A merger agreed on just after the balance sheet date nevertheless is reported in the notes to the financial statements.
_____ 3.A company forgoes hiring another full-time accountant,which would add only slightly to the financial statements' accuracy.
_____ 4.A company uses lower-of-cost-or-market to value inventory.
_____ 5.A large company rounds its financial statement figures to the nearest $10,000.

Quizplus · Accepted Answer

The Answer of Each of the following statements is justified by a concept or convention of accounting.Write the letter in the blank next to each statement corresponding to the concept or convention involved.
  _____ 1.This convention best enhances comparability of financial statements between years.
_____ 2.A merger agreed on just after the balance sheet date nevertheless is reported in the notes to the financial statements.
_____ 3.A company forgoes hiring another full-time accountant,which would add only slightly to the financial statements' accuracy.
_____ 4.A company uses lower-of-cost-or-market to value inventory.
_____ 5.A large company rounds its financial statement figures to the nearest $10,000.

Each of the Following Statements Is Justified by a Concept