Some of the Lawmakers Are More Concerned with the Costs

question 42

Multiple Choice

Some of the lawmakers are more concerned with the costs of jails than they are prisons.They make the argument that almost 13 million people are admitted to jails over the course of a year nationwide.Other lawmakers claim that jails are different than prisons and should not be their concern at this time.How are jails different than prisons?

• A)Jails are operated by county and city governments.
• B)Jails only house inmates that have been convicted of a crime.
• C)Jails house inmates who have sentences than longer than one year.
• D)Jails offer a wide variety of rehabilitation and educational programs.

Understand the differences and overlap between GAAP and International Financial Reporting Standards (IFRS) in terms of revenue recognition and measurement.

Explain the concept and implications of managing earnings, including practices such as "cookie jar reserves" and "big bath" charges.

Recognize the roles of the audit committee, internal audit staff, and the SEC in preventing and identifying accounting errors and irregularities.

Understand the significance of arrangement understanding, bill and hold basis, and up-front fees in revenue recognition.

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Definitions:

Sales Price Variance

The difference between the actual selling price of a product and its budgeted or planned selling price, multiplied by the actual quantity sold.

Opening Stock

The value of goods available for sale at the beginning of an accounting period.

Flexible Budget

A budget that adjusts or flexes with changes in the volume or activity level, allowing for more accurate forecasting and planning.

Indirect Labour Cost

Expenses related to employees that cannot be directly traced to specific products or services, such as maintenance staff or supervisors.