Concept

       Identify the most appropriate accounting principle or convention for each of the situations.

  A business should record depreciation expense for its non-current assets, even though it has not spent a dollar for this expense.  

Identify the most appropriate accounting principle or convention for each of the situations:

Sales revenues are recognised when goods are delivered to and accepted by customers, but not when the purchase orders are placed

Identify the most appropriate accounting principle or convention for each of the situations:

Once the reducing balance method has been chosen for the depreciation of equipment, it should be adopted over different financial years.

Identify the most appropriate accounting principle or convention for each of the situations:

Even though the cost of inventory fluctuates over time, inventory should be recorded at its cost or its weighted average cost, but not its estimated selling price.

Identify the most appropriate accounting principle or convention for each of the situations.:

Inventory should be valued at its net realizable value, when it is lower than the cost.