Identify a True Statement About the North American Industry Classification

question 55

Multiple Choice

Identify a true statement about the North American Industry Classification System (NAICS) .

• A)It is generally used by entrepreneurs to get detailed information about local competitive environment.
• B)It provides potential entrepreneurs with data related to industry categorization.
• C)It provides an entrepreneur with a standard 15-digit industry code.
• D)It is unable to provide any information about national trends of specific industries.

Understand the accounting treatment and classification of investments on the cash flow statement.

Recognize the criteria for the use of consolidation accounting and when to apply the equity method.

Calculate the carrying amount of investments using the equity method.

Evaluate the impact of investment transactions and adjustments on financial statements.