Each of the following statements violates a concept or convention of accounting.Write the letter in the blank next to each statement corresponding to the concept or convention violated.
_____ 1.A note to the financial statements indicating a change in inventory methods is omitted.
_____ 2.When management is unsure of which estimates to use in a given situation,the estimate resulting in the largest net income is always used.
_____ 3.In 20x5,a company uses straight-line depreciation and in 20x6 the company uses declining-balance depreciation.
_____ 4.A small company expenses all expenditures under $10,000.
_____ 5.A small company purchases a $50,000 computer to save $3,000 per year in bookkeeping wages.

Question

Each of the following statements violates a concept or convention of accounting.Write the letter in the blank next to each statement corresponding to the concept or convention violated.
  _____ 1.A note to the financial statements indicating a change in inventory methods is omitted.
_____ 2.When management is unsure of which estimates to use in a given situation,the estimate resulting in the largest net income is always used.
_____ 3.In 20x5,a company uses straight-line depreciation and in 20x6 the company uses declining-balance depreciation.
_____ 4.A small company expenses all expenditures under $10,000.
_____ 5.A small company purchases a $50,000 computer to save $3,000 per year in bookkeeping wages.

Quizplus · Accepted Answer

The Answer of Each of the following statements violates a concept or convention of accounting.Write the letter in the blank next to each statement corresponding to the concept or convention violated.
  _____ 1.A note to the financial statements indicating a change in inventory methods is omitted.
_____ 2.When management is unsure of which estimates to use in a given situation,the estimate resulting in the largest net income is always used.
_____ 3.In 20x5,a company uses straight-line depreciation and in 20x6 the company uses declining-balance depreciation.
_____ 4.A small company expenses all expenditures under $10,000.
_____ 5.A small company purchases a $50,000 computer to save $3,000 per year in bookkeeping wages.

Each of the Following Statements Violates a Concept or Convention