I just want to double check if my answers are correct.
Write the letter in the blank next to each statement corresponding to the concept or convention violated.
a. Consistency
b. Materiality
c. Conservatism
d. Full Disclosure
e. Cost-benefit
___D._1. A note to the financial statements indicating a change in inventory methods is omitted.
__C.___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.
__A.___3. In 20x7, a company uses straight-line depreciation and in 20x8 the company uses declining-balance depreciation
___B.__4. A small company expenses all expenditures under $10,000.
__E.___5. A small company purchases a $50,000 computer to save $3,000 per year in bookkeeping wages.
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