What is the purpose of the consistency concept in accounting?
Correct!
Wrong!
An accountant records a sale based on an invoice received from the customer. This practice demonstrates which GAAP 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!
Which of the following is true according to the materiality concept?
Correct!
Wrong!
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!
Quality Consideration of GAAP MCQs
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