Why is it not a good idea to rely on your income statement to run your business?
A. The income statement records cash when it comes into the business.
B. The income statement adds non-cash expenses back to the business's earnings.
C. The income statement deducts non-cash expenses, such as depreciation, even when no cash is actually flowing out of the business.
D. The income statement usually contains errors that other statements don't have.
Answer: C
You might also like to view...
Before the fall term began, professors at Ridgeview College were required to fill out many forms, ranging from performance objectives to lists of summer contacts with prospective students. Many professors complained that they would rather spend the time getting ready for their courses. This is an example of which barrier to successful control?
A. Overemphasis on one instead of multiple approaches. B. Overemphasis on paperwork. C. Overemphasis on means instead of ends. D. Too much control. E. Too much flexibility.
Internal documentation is more reliable to the auditor if the internal control surrounding the documentation is considered strong than if it is considered weak
a. True b. False Indicate whether the statement is true or false
Management of a limited partnership business is in the hands of the limited partner or partners.
Answer the following statement true (T) or false (F)
Why is there an "ordinance-or-law exclusion" in a typical HO-3 policy?
A) Because it is too costly to include B) Because there is a federal insurance policy that covers this aspect C) Because it is better insured under another insurance policy D) There is no such exclusion.