A company's significant accounting policies are based on and must be consistent with: O the state society's code of ethics. O generally accepted accounting principles. the AICPA Code of Professional Conduct. O a judge's decision as to what the company's policies should be. Question 2 1 pts Which of the following statements is true? O Accounting is often said to deal with costs, expired costs, and lost costs, and these costs, rather than service potentials, expire over time. A loss is usually an involuntary expiration of an asset without any expectation of receiving benefits from the expiration. The incurring of expense generally means that an exchange has taken place in which another asset has been received for merchandise delivered or services rendered. O Revenue is earned throughout the entire range of activities of an enterprise and usually is recordedica o SOCO Experts have only recently begun to debate the exact nature of the basic characteristics and related principles comprising accounting theory. O True O False Question 4 A building was purchased for $5 million. The accountant would generally ignore all evidence of increases in the value of the building and continue to report it at a cost of $5 million (less accumulated depreciation) in subsequent balance sheets. All of the following support this procedure except one. Choose the exception. Understandability case in knowing what the reported information means. Verifiability, there would be little disagreement among accountants as to the cost of the buildi Going concern: assumption that assets will be used, not sold. Relevance information must be useful in making future economic decisions When providing services, the revenue is earned when the: O client (user) is satisfied with the contract for the services. O services have been performed. O invoice has been received by the user. O invoice has been sent by the provider