Chp 6 Handout.docx - Chapter 6 Merchandising Inventory I)...

This preview shows page 1 - 2 out of 6 pages.

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.

Upload your study docs or become a

Course Hero member to access this document

Upload your study docs or become a

Course Hero member to access this document

End of preview. Want to read all 6 pages?

Upload your study docs or become a

Course Hero member to access this document

Term
Fall
Professor
CRAWFORD
Tags
3 000, 350, 2 200, 360

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture