All of the following are true regarding accrual accounting except:
a. Accrual basis measures operating success by the extent to which accomplishments exceed efforts.
b. Accrual basis measures operating success by the extent to which revenues exceed expenses.
c. Accrual basis reports operating activities in terms of their success in generating value.
d. Accrual basis for the recognition of expenses is not required under IFRS.
D
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The purpose of financial reporting is to provide economic information to external decision makers only
a. True b. False Indicate whether the statement is true or false
The weighted average costing method assumes that units in beginning inventory are the first units transferred
Indicate whether the statement is true or false
A trademark does not need to be registered to support a trademark infringement action
a. True b. False Indicate whether the statement is true or false
The Lynx Manufacturing Company produces components used in electronic toys. In fiscal year 2017, Lynx earned an accounting profit of $3 million. However, Lynx's production facilities might have also been used to produce components for mobile phones, which would have generated $2 million in revenues and saved the company $500,000 in production costs. Which of the following statements is true?
A. Lynx suffered an economic loss of $500,000. B. Lynx suffered an economic loss of $2.5 million. C. Lynx earned an economic profit of $5.5 million. D. Lynx earned an economic profit of $500,000.