Inventory terms (Learning Objectives 4 & 5) 5–10 min.

Match the terms with the definitions.

_____ 1. A company must perform strictly proper accounting only for items that are significant to the business’s financial statements.

a. Full-disclosure

b. Materiality

c. Consistency

d. Conservatism _____ 2. Reporting the least favorable figures in the financial statements.

_____ 3. A business’s financial statements must report enough information for users to make knowledgeable decisions about the company.

_____ 4. A business should use the same accounting methods and procedures from period to period.

AppendixLO1