Which of the Following Statements Are Correct

question 61

Multiple Choice

Which of the following statements are correct?
I. A company's choice of accounting principles for financial reporting purposes affects net cash flow for the accounting period.
II. A company's choice of accounting principles for financial reporting purposes does not affect operating cash flow.
III. If a company sells its receivables, this will increase operating cash flow.
IV. If a company sells its receivables, this will increase financing cash flow.

• A)I and III
• B)I, II, and III
• C)II and IV
• D)I and IV

Understand the concept of contribution margin and its calculation.

Analyze income statements to identify variable and fixed costs.

Determine the total variable cost and variable cost per unit under different production levels.

Calculate manufacturing overhead costs and understand their implications on production.

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Definitions:

Promotion Alternatives

Various strategies or methods used by businesses to advertise, market, and sell their products or services.

Direct Marketing

Direct marketing refers to a strategy where businesses communicate directly with targeted customers through various channels, including mail, email, and telephone, to generate a response or transaction.

Sales Promotion

A marketing strategy designed to increase sales temporarily by offering incentives or discounts to consumers or traders.

Promotion Alternatives

Different strategies and methods used by businesses to communicate the value of a product or service to the customers, aiming to increase sales.