Given that the LCM rule is an application of the conservatism convention in the current accounting period,

Question:

Given that the LCM rule is an application of the conservatism convention in the current accounting period, is the effect of this application also conservative in the next period?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Principles of Accounting

ISBN: 978-1133626985

12th edition

Authors: Belverd E. Needles, Marian Powers and Susan V. Crosson

See More Books

Question Posted: Mar 26, 2014 08:12 AM

See More Questions

The following question is an application of Hofstede's cultural dimensions (or values) model. Please begin by carefully considering the cultural analysis along the horizontal dimension...
Can we say that this is an application of integration by parts?
Can we say that this is an application of integration by parts?
At the beginning of the year, Plummer's Sports Center bought three used fitness machines from Advantage, Inc. The machines immediately were overhauled, installed, and started operating. The machines...
A company wished to study the effects of four training programs on the sales abilities of their sales personnel. Thirty-two people were randomly divided into four groups of equal size, and each group...
Complete the following etiquette quiz. Your instructor will provide you with answers so you can check your responses. a. On what side should you wear your name tag? b. Is it appropriate to drink beer...
(a) Verify that for both collisions in Figure 8.2 the momentum of the two-cart system remains constant. (b) Verify that both collisions are elastic. Figure 8.2 (a) Soft and (b) hard collisions...
Stine Company has accounts receivable of $95,400 at March 31, 2014. An analysis of the accounts shows these amounts. Credit terms are 2/10, n/30. At March 31, 2014, there is a $2,100 credit balance...
1. 20 The full symbols of atoms of elements R, T, X, Y and Z are 2R, 31, 30, 34X, and 5Z respectively 15 15 164, Which one of the following is an isotope of Y A. R B. T C. X D. Z 2. The electronic...
Richard chooses technique 0 and 2 requiring 10+10-20 efforts and provising 10+11=21 benefits. Hence, 21 is returned as the output Example 2: input1: 3 input2: (10,10,10,10) input3: (10,11,12,15)...
Which of the following methods do not require a physical inventory: periodic inventory system, perpetual inventory method, retail method, or gross profit method?
Under what condition would all four methods of inventory pricing produce exactly the same results?
In Exercises 1 and 2, find the distance from the point Q to the plane P. 1. Q = (2, 2, 2), P with equation x + y - z = 0 2. Q = (O, 0, O), P with equation x - 2y + 2z = 1
Identify a capital budgeting project and then discuss the elements outside of the traditional capital budgeting calculations that companies, managers, and employees have to consider prior to...
You plan to deposit amounts as shown at the beginning of this year, and at the beginning of every year until five year from now, into a bank which will give you annual interest. The following table...
Before we talk about the mechanics of forecasts, think about forecasts in general. What do you think are some of the key financial assumptions needed to forecast financial statements or cash flows ?
Lita made a loan of 1500 pesos at 9% simple interest for 5 years. At the end of this period, without the interest being paid the loan was extended for 3 years, but the new interest rate was made 20%...
What is the CPI base year being used and what is the value of the index in that year? Calculate the rates of inflation between 2018-2019 and 2020-2021. Round your answer to two decimal places.
Explain why compounds of Zn 2+ are colorless, but compounds of Cu 2+ are often blue or green.
As of January 1, 2018, Room Designs, Inc. had a balance of $9,900 in Cash, $3,500 in Common Stock, and $6,400 in Retained Earnings. These were the only accounts with balances in the ledger on January...
An insulated cardboard box is to be designed to transport a labile vaccine product that has to be kept at 78C in areas where lowtemperature refrigeration is not widely available. The box is a cube...
Analyze each transaction listed in the table that follows and place X's in the appropriate columns to indicate the transaction's classification and its effect on cash flows using the indirectmethod....
The Comparative statements of cash flows for Executive style corporation, a manufacturer of high-quality suits for men, appear on the next page. To expand its markets and familiarity with its brand,...
The comparative balance sheets for Alvin Arts, Inc., for December 31, 2011 and 2009 appear on the opposite page. Additional information about Alvin Art's operations during 2010 is as follows: (a) Net...
The idle time in the binding shop based on the sequence developed using Johnson's rule = enter your response here hour(s) (enter your response as a whole number). a-b) Using Johnson's rule for...
A $67,000 machine with a 7-year class life was purchased 2 years ago. The machine will now be sold for $50,000 and replaced with a new machine costing $88,000, with a 10-year class life. The new...
The "Fly By Night" Used Car Lot uses the following to illustrate their 8.7% finance plan on a car paid over 4 years. Cost of the car: 8.7% finance charge: $13800 $4802.4 (that is, 8.7 %/year x $13800...

Given that the LCM rule is an application of the conservatism convention in the current accounting period,

Question:

Step by Step Answer:

It probably is not A reduction in the current period ending ...View the full answer

Principles of Accounting

Students also viewed these Managerial Accounting questions