p11 - 80. The basic accounting concept that refers to the...

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80. The basic accounting concept that refers to the tendency of accountants to resolve uncertainty in favor of understating assets and revenues and overstating liabilities and expenses is known as the a. conservatism constraint. b. materiality constraint. c. substance over form principle. d. industry practices constraint. 81. Which of the following best illustrates the accounting concept of conservatism? a. Use of the allowance method to recognize bad debt losses from credit sales b. Use of the lower of cost or market approach in valuing inventories. c. Use of the same accounting method from one period to the next in computing depreciation expense d. Utilization of a policy of deliberate understatement of asset values in order to present a conservative net income figure 82. Trade-offs between the characteristics that make information useful may be necessary or beneficial. Issuance of interim financial statements is an example of a trade-off between a. relevance and reliability. b. reliability and periodicity.
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This note was uploaded on 11/03/2011 for the course ACCT 3223 taught by Professor Peck during the Spring '11 term at Texas State.

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p11 - 80. The basic accounting concept that refers to the...

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