Which Statement Is Not Correct

question 24

Multiple Choice

Which statement is not correct?

• A)"Purchase discount lost" is reported if the gross method is used.
• B)Cut off means that obligations are reported in the proper accounting period.
• C)Supplier discounts can be accounted for by using the gross method.
• D)Trade payables are obligations for goods received or services used.

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Definitions:

Operating Expenses

Costs associated with the operation of a business, such as rent, utilities, and payroll, that are not directly tied to the production of goods or services.

Loss on Disposal

The financial loss recognized when the selling price of an asset is less than its carrying amount on the balance sheet.

Operating Expenses

Expenses incurred in the normal operations of a business, including costs such as rent, salaries, and utilities, but not including cost of goods sold.

Operating Revenues

Income generated from a company's primary business activities, excluding income from investments or secondary operations.