Which of the following is a true statement?

a. When arbitrary allocations are used, income statements have very little information content.
b. The calculation aspects of most expense measurements are easily resolved under historical cost accounting.
c. When arbitrary allocations are used, income statements still have information content.
d. Capital market research has shown that the usefulness of accounting numbers is best resolved using the deductive logic of the allocation problem.


ANSWER: C

Business

You might also like to view...

According to the failing company doctrine, two or more smaller companies are allowed to merge to compete with a larger company even if they are highly profitable as smaller companies

Indicate whether the statement is true or false

Business

OPIC insurance is primarily intended to protect U.S. investments in Japan, Canada and Western Europe

Indicate whether the statement is true or false

Business

If Joe, an African-American employer with light skin, discriminates against Omar, an African-American employee with dark skin, Omar will most likely file a discrimination claim based on:

a. sex b. race c. national origin d. color e. religion

Business

The three phases of CRM include (1) reporting, (2) ____________ and (3) predicting.

Fill in the blank(s) with the appropriate word(s).

Business