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-BARSIC- [3]
2 years ago
15

During its first year in business, Comfy Home accounted for its inventory using the last in first out (LIFO) method. In the seco

nd year of business, Tenisa asks the accountant if the company can switch to first in first out (FIFO) because she recently learned FIFO will tend to increase both the value of assets and net income. The accountant tells Tenisa that US GAAP allows a company to choose its inventory valuation method as long as it doesn't change over time without a justifiable reason. This is an example of the principle of:________
a. Conservatism.
b. Relevance.
c. Consistency.
d. Reliability.
Business
1 answer:
Dmitry [639]2 years ago
5 0

Answer:

Consistency principle

Explanation:

Accounting principles are defined as the general rules of.axcpunting that businesses are expected to follow when reporting financial information.

Accounting principles include:

- Accrual principle

- Conservatism principle

- Consistency principle

- Cost principle

- Economic entity principle

- Full disclosure principle

- Going concern principle

- Matching principle

- Materiality principle

- Monetary unit principle

- Reliability principle

- Revenue recognition principle

- Time period principle

Consistency principle requires one the continue using an accounting method consistently for future accounting periods so that information can be easily comparable.

In the given scenario the accountant tells Tenisa that US GAAP allows a company to choose its inventory valuation method as long as it doesn't change over time without a justifiable reason.

This is an example of consistency principle

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________ is a method of inventory costing in which all variable manufacturing costs (direct and indirect) are included as invent
goblinko [34]

Answer:

A) variable costing

Explanation:

acording to a citated text the variable costing excluded all fixed manufacturing costs is the Variable costing

4 0
3 years ago
Roger remembers from a business class he took years ago in college that there are several business forms to choose from. Each fo
earnstyle [38]

Answer:

This question is incomplete, the options are missing. The options are the following:

a) Partnership

b) C Corporation

c) S Corporation

d) Limited Liability Company

e) Limited Liability Partnership

And the correct answer is the option D: Limited Liability Company.

Explanation:

To begin with, the name of <em>"Limited Liability Company" </em>refers to a type of form of business, in the field of business law, that is helpful to adapt and use for some owners regarding the particular characteristics that this form gives to them. So once said that, this type of business form has the characteristics of both a corporation and a partnership so that means that it is quite flexible and can adapt depending on the situation that the owner is having. Moreover, one of the most important aspects of this type of form is the fact that the owner has a limited liability to what happens in the company so that means that his private assets are secure under this form.

6 0
3 years ago
As the information technology advances and consumers buy products requiring more and more technology, the wages of people with h
Katyanochek1 [597]

Answer:

b. increase as the demand for high tech skills increases.

Explanation:

Due to the fact that the demand for technological products is increasing, the demand for people who possess high tech skills would also increase as firms would want to provide more tech products to satisfy the demand of consumers.

This would lead to an increase the demand for people with high tech skills. When demand exceeds supply, wages would rise.

I hope my answer helps you

6 0
3 years ago
The market for insurance is one example of reducing risk by using diversification.
Maurinko [17]
The correct answer for this question is a. True. Hope this helps you fulfill your desires. 
4 0
3 years ago
A severe freeze has once again damaged the Florida orange crop. The impact on the market for orange juice will be a leftward shi
mezya [45]

Answer:

C. Supply Curve

Explanation:

Supply : Quantities sellers are able & willing to sell at a price , period . Determinants :  Price (price supply direct relationship - upward sloping curve) , Inputs Price , Other goods price , Technology , Govt Policy , Seasonal factors .

Change in supply due to Price is 'Change in Quantity supplied' , leads  to movement along the curve . Change in Supply due to other factors is 'Change in Supply' & shifts the curve

Damage of orange crop will decrease its supply & hence derived supply of its by product orange juice .

Since the decrease in supply is due to other (seasonal) factor , it will shift the supply curve - decrease it & leftward shift . This supply deficiency leads to excess demand raising the equilibrium prices finally .

5 0
3 years ago
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