Which of the following is/are not true?
a. Net income or profit for a period is the difference between revenues from selling goods and services and the expenses incurred to generate those revenues, plus some gains or losses of the period.
b. If the expenses plus losses exceed the revenues plus gains, the result is a net loss.
c. U.S. GAAP and IFRS require the accrual basis of accounting, which detaches the recognition of revenue from the receipt of cash.
d. A seller recognizes revenues when it has performed all, or nearly all, of its obligations to the customer and when it has received cash or an asset that is convertible to cash.
e. The firm recognizes and reports expenses that have a causal link with revenues, such as cost of sales, in the next accounting period.
E
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HCN recently introduced a product that the distributor considers a "bottleneck" item. What is the risk/opportunity relationship for bottleneck items?
A) low risk, mediocre opportunity B) low risk, high opportunity C) low risk, low opportunity D) high risk, mediocre opportunity E) high risk, low opportunity
Organizations that operate closer to the cutting edge of a technology rely more on ________ and less on benchmarking what is already being practiced elsewhere.
A. capitalization B. auditing C. base technologies D. environmental scanning E. key technologies
Describe the advantage of establishing a line of credit.
What will be an ideal response?
When computing yield to maturity, the implicit reinvestment assumption is that the interest payments are reinvested at the
A. yield to maturity at the time of the investment. B. current yield. C. coupon rate. D. the average yield to maturity throughout the investment period. E. prevailing yield to maturity at the time interest payments are received.