Which of the Following Statements Is(are) True

question 102

Multiple Choice

Which of the following statements is(are) true?
(A) Divisional income statements do not include allocated common costs.
(B) The gross margin ratio is computed by dividing operating income by sales.

• A) Only A is true.
• B) Only B is true.
• C) Both of these are true.
• D) Neither of these is true.

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Definitions:

Preferential Payment

A payment made to a creditor before a bankruptcy filing that is considered unfair to other creditors.

Transferred Property

Assets or rights that have been legally moved from one owner to another through a sale, gift, or inheritance.

Preexisting Debt

Financial obligations or liabilities that exist before a specified event or transaction, such as taking out a new loan.

Fraudulent Transfer

A transaction where a debtor intentionally transfers assets to avoid creditors' claims.