Human Resources Accounting
Quick practice
Question 1 of 5
List 1 (Accounting Situation)
A. A company expects a legal claim to result in a loss of Rs. 5,00,000
B. Market value of inventory decreases below cost
C. Possible gain from a pending court case
D. Company estimates doubtful debts of Rs. 50,000
List 2 (Accounting Treatment as per Conservatism)
1 Recognize liability or loss immediately
2 Record inventory at lower of cost or market value
3 Ignore possible gains until realized
4. Provide for doubtful debts
Choose the correct option:
A
A -1,B-2,C-3,D-4
B
A -1,B-3,C-2,D-4
C
A -4,B-2,C-3,D-1
D
A -1,B-2,C-4,,D-3
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