Herbert Company uses these accounting practices: (a) Inventory is reported at cost when market value is lower.

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Herbert Company uses these accounting practices:

(a) Inventory is reported at cost when market value is lower.

(b) Small tools are recorded as plant assets and depreciated.

(c) The income statement shows paper clips expense of $10.

Indicate the accounting constraint, if any, that each practice has violated.

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Financial Accounting Tools For Business Decision Making

ISBN: 9780471730514

4th Edition

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso

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