Which of the Following Does Michaels Assume

question 27

Multiple Choice

Which of the following does Michaels assume?

• A) Revenues this year were not as high as last year's.
• B) Revenues are not as high as Kershner thinks they are.
• C) Selling expenses exceeded administrative expenses this year.
• D) Other factors must be taken into account to arrive at an income statement.
• E) Income taxes will be high this year.

---

Definitions:

Forward Contract

A special arrangement made between two parties to transact an asset at a pre-agreed price on a set date in the future.

Exchange Currency

The act of converting one country's currency into another, often subject to an exchange rate.