Indicate which of the following accounting policies are conservative by placing an X under Yes or No. Assume inflationary conditions exist.
|
Conservative |
||
|
Yes |
No |
|
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a.LIFO inventory |
________ |
________ |
|
b. FIFO inventory |
________ |
________ |
|
c. Completed-contract method |
________ |
________ |
|
d. Percentage-of-completion method |
________ |
________ |
|
e. Accelerated depreciation method |
________ |
________ |
|
f. Straight-line depreciation method |
________ |
________ |
|
g. A relatively short estimated life for a fixed asset |
________ |
________ |
|
h. Short period for expensing intangibles |
________ |
________ |
|
i.Amortization of goodwill over 5 years |
________ |
________ |
|
j. High interest rate used to compute the present value of accumulated benefit obligation |
________ |
________ |
|
k. High rate of compensation increase used in computing the projected benefit obligation |
________ |
________ |