?? The lower of cost or net realizable value rule isan application of?a) Matching principleb) Monetary unit assumptionc) Going concern conceptd) Conservatism principle

Explanation of Matching Principle: The Matching Principle requires that expenses be recorded in the…

Answered: The lower of cost or net realizable…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter2: The Accounting Information System

Section: Chapter Questions

Problem 5MCQ

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Define Monetary/non-monetary method
Cost method, Market method?
Discuss the following models in relation to purchasing power parity. Use suitable examples oneach:i. Asset Market Model ii. Balance of payments model
Purchasing power gain or loss results from: a. Monetary asset only b. Monetary liability only c. Both monetary asset and monetary liability d. Nonmonetary assets and nonmonetary liability
Which of the following facilitates the comparison of financial performance with one period to another period is possible ? O a. Historical cost concept O b. Going concern Assumption O c. Matching Concept O d. Consistency Principle
Describe following:* Market approach* Income approach* Cost approach
Which balance sheet might be most useful to an investor? a. U.S. GAAP balance sheet b. IFRS GAAP balance sheet using cost model c. IFRS GAAP balance sheet using revaluation model
Which of the following correctly orders the investment rules of average accounting return (AR), internal rate of return (IRR), and net present value (NPV) from the most desirable to the least desirable? a. IRR, AR, NPV. b. AR, IRR, NPV. c. NPV, AR, IRR. d. AR, NPV, IRR. e. NPV, IRR, AR.
Identify the root of the value maximization principle: O a. Accounting O b. Statistics O c. Economics O d. Finance
Define the term capitalized cost?
Which different terms are used to refer to rate of return?
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The lower of cost or net realizable value rule is an application of? a) Matching principle b) Monetary unit assumption c) Going concern concept d) Conservatism principle