Financial information exhibits the characteristic of consistency when
a. accounting procedures are adopted which smooth net income and make results consistent between years.
b. extraordinary gains and losses are shown separately on the income statement.
c. accounting entities give similar events the same accounting treatment each period.
d. expenditures are reported as expenses and netted against revenue in the period in which they are paid.
C
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Which of the following statements regarding methods to record investments after acquisitions is incorrect?
a) it is not relevent to the consolidated FS whether the parent company measures its investment account using the cost method or using one of the equity methods so long as the eliminating entries are properly prepared b) initial recording of the investment (At its cost) is identical in all three methods, i.e., cost, partial equity, or complete equity method c) under the equity method, the investor adjusts the investment account upward for its share of the investee's earnings and dividends declared d) for periods subsequent to acquisition, both the investment account and the equity in subsidiary income will be larger under the partial equity method than under the complete equity method if the subsidiary carries depreciable assets with market values greater than book values
Which of the following is a true statement?
A. Meals are never deductible as a business expense. B. An employer can only deduct half of any meals provided to employees C. The cost of business meals must be reasonable D. A taxpayer can only deduct a meal for a client if business is discussed during the meal. E. None of these is true.