Income Can Be Distorted by Factors Other Than Inflation

question 107

Multiple Choice

Income can be distorted by factors other than inflation.The most important causes of distortion for inter-industry comparisons are:

• A) accounting trends.
• B) application of IFRS.
• C) timing of revenue receipts and nonrecurring gains or losses.
• D) cash reinvestment.

Understand the limits on agency power and the statutory, political, and judicial constraints.

Grasp the publication process and effective dates for new agency rules and regulations.

Understand the principles of informal vs. formal rule-making processes within administrative agencies.

Gain knowledge on the roles and powers of administrative law judges (ALJs) in the initial order process and the consequences of not appealing their decisions.

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Definitions:

Electronic Check Presentment

A process that allows financial institutions to exchange digital images of checks instead of physical checks for faster processing.

Substitute Checks

Digital or paper reproductions of original checks that are legally equivalent for processing payments.

UCC

A complete collection of regulations that oversee business dealings within the United States, known as the Uniform Commercial Code.

Stop-Payment Order

A request made to a bank by an account holder to not pay out on a check or transaction previously issued or authorized.