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Accounting Principles Questions With Verified Answers | UPDATED

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Accounting Principles Questions With Verified Answers | UPDATED The consistency principle - ANSWER states that, once you adopt an accounting principle or method, continue to follow it consistently in future accounting periods. The full disclosure principle - ANSWER states that you should include in an entity's financial statements all information that would affect a reader's understanding of those statements. The materiality principle - ANSWER states that you are allowed to ...

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Accounting Principles Prep Questions With Verified Answers

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Accounting Principles Prep Questions With Verified Answers Which of the following expressions is incorrect? Sales revenue - cost of goods sold - Operating expenses = Net income Operating expenses - Cost of goods sold = Gross profit Net income + Operating expenses = Gross profit Gross profit - Operating expenses = Net income - ANSWER Operating expenses - Cost of goods sold = Gross profit Net income - ANSWER gross profit - operating expenses or Sales revenue - cost of goods sold - O...

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Accounting Principles Fundamental Prep Questions With Verified Answers

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Accounting Principles Fundamental Prep Questions With Verified Answers Sometimes companies must estimate ending inventory. Review the reasons given below for estimating inventory and choose all of the correct responses. - ANSWER -The store was flooded. -Fire destroyed the inventory warehouse. -Interim financial statements need to be prepared. Which of the statements below explain why LCM is used? - ANSWER -LCM allows companies to recognize a loss in value of an asset in the period...

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