Accrual-basis accounting is superior to cash-basis accounting in that:
A. there is only one method of preparing the operating activities of the statement of cash flows.
B. the cash balance reported will be greater.
C. it provides a better measure of profitability.
D. a statement of cash flows is not needed.
Answer: C
You might also like to view...
Scope of influence is:
a. the basis of self motivation. b. our ability to influence others. c. anything we do for the customer. d. a problem solving strategy.
A firm has determined that its optimal EOQ ordering quantity is 1,250 units for a certain product. If average daily demand is 90 units, what should the review period for this product be?
a. 100 days b. 0.07 days c. 13.8 days d. Review period cannot be determined from the information given
When planning new products, managers need not be too concerned about safe design, because it is each consumer's responsibility to decide what products are safe to buy and use.
Answer the following statement true (T) or false (F)
Information collected and published by finance professor Aswath Damodaran consistently demonstrates that, within industries, the price to book value ratio is GREATER than the EV to EBITDA ratio
Indicate whether the statement is true or false