Question

A business should report the least favorable figures in the financial statements when two or more possible options are presented. b. A business's financial statements must report enough information for outsiders to make knowledgeable decisions about the company. c. A business should use the same accounting methods and procedures from period to period. d. A company must perform strictly proper accounting only for items that are significant to the business's financial situation.

Answer 1

Conservatism

b. Disclosure Principle

c. consistency principle

d. Materiality Concept

Step-by-step explanation:

The materiality principle states that accounting principles can be violated only if the amount been considered is small enough that the financial statements will not be misleading

Conservatism states that when uncertainty exists and there is doubt between reasonable alternatives for recording an item, pick the least less favourable outcome.

The disclosure principle states that a company should provide all the necessary information so that users of financial information can make informed decisions regarding the company.

The consistency principle states a firm should use the same accounting principles from period to period.