A company recognizes a potential $50,000 loss from a lawsuit but does not record a $60,000 anticipated revenue until the contract is signed. This approach reflects which accounting concept?
Correct!
Wrong!
If a $1,000 error is found in a financial statement where total expenses amount to $5,000,000, is this error likely considered?
Correct!
Wrong!
An accountant records a sale based on an invoice received from the customer. This practice demonstrates which GAAP concept?
Correct!
Wrong!
Which of the following is true according to the materiality concept?
Correct!
Wrong!
What is the purpose of the consistency concept in accounting?
Correct!
Wrong!
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