Quiz 1 - 1. The body that has the power to prescribe the...

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Sheet1 Page 1 1. The body that has the power to prescribe the accounting practices and standards to be employed by companies that fall un d a.FASB b.AICPA xc.SEC d.APB 2. Which of the following accounting practices violates the conservatism principle? a.Recording likely losses before the transaction occurs b. Writing down the cost of inventory whose value falls below its historical cost before it is sold xc. Writing up the cost of inventory whose value has risen above its historical cost before it is sold d. Recognizing an extraordinary gain on the sale of an asset that is not part of inventory 3. The idea that a company will continue in the absence of contrary evidence is an example of the basic concept of a. conservatism xb. going concern c. consistency d. substance over form 4. The quality of information that gives assurance that it is reasonably free of error and bias and is a faithful representation is a. relevance xb. reliability c. verifiability d. neutrality 5. A decrease in net assets arising from peripheral or incidental transactions is called a(n)
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Quiz 1 - 1. The body that has the power to prescribe the...

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