With respect to the valuation of inventory and measurement of the cost of goods sold, the principle of consistency means that the same method should be applied:
A. In successive accounting periods.
B. By all companies in a given industry.
C. To all products in the inventory.
D. In financial statements and income tax returns.
A
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Which of the following statements about adverse selection is most correct?
A. Adverse selection means those individuals with greater health risk are more likely to purchase health insurance B. The adverse selection problem exists because of asymmetric information (applicants have better knowledge of their health status than insurers have) C. Historically, underwriting provisions were used to minimize the adverse selection problem D. Statements a and b are both correct E. Statements a, b, and c are all correct
The functional dependency noted as A ? B means that the value of A can be determined from the value of B
Indicate whether the statement is true or false