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