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94. Which of the following serves as the justification for the periodic recording of depreciation expense?


a. b. c. Association of efforts (expense) with accomplishments (revenue) Systematic and rational allocation of cost over the periods benefited Immediate recognition of an expense d. Minimization of income tax liability


95. Application of the full disclosure principle a. is theoretically desirable but not practical because the costs of complete disclosure exceed the


benefits. b.


is violated when important financial information is buried in the notes to the financial


statements. c.


prices. d.


is demonstrated by the use of supplementary information presenting the effects of changing


requires that the financial statements be consistent and comparable.


a.


96. Which of the following is an argument against using historical cost in accounting? Fair values are more relevant.


b. c. d. Historical costs are based on an exchange transaction. Historical costs are reliable. Fair values are subjective. Prepare to receive your Test Bank in the next moment. Contact us at


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