Which of the following statements is true?
A) The finance manager uses the framework of the income statement to find the operating income of the company (an accounting measure), which is also the true cash flow from operations.
B) In accrual-based accounting, revenue is recorded at the time of sale if the revenue has been received in cash.
C) Three fundamental issues separate net income and cash flow: accrual-based accounting, noncash expense items, and interest expense.
D) Generally accepted accounting principles (GAAP) in the United States do not allow the use of accrual-based accounting to record revenue.
Answer: C
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The purpose of an escrow is:
a. so the terms of the transaction are met. b. to acquire a new loan for the buyer. c. to institute a policy of title insurance. d. All of the above.
With decreasing term insurance
A) the premiums remain constant, but the face amount of the policy declines. B) the premiums decline, and the face amount of the policy declines. C) the premiums remain constant, and the face amount of the policy remains constant. D) the premiums decline, and the face amount of the policy increases.