Chapter 6Merchandising InventoryI)Accounting PrinciplesA)Consistency Principlea)Businesses should use the same accounting methods and proceduresfrom period to period.b)_____________ helps users of financial statement information to______________ financial statements from one period to the next.c)A change in the accounting methods must be reported to the investorsand creditors in the ______________________________B)Disclosure Principlea)A company should report enough information to allow users to makeknowledgeable decisions about the company. Information should be_____________and have __________________________.C)Materiality Concepta)A company must follow strictly proper accounting______for significantitems.b)Information is significant when it would cause someone to___________________________D) Conservatisma)A company should report the _________favorable figures in thefinancial statements when two or more possible options are presented.
