The Accounting Profession Has Adopted a Current Operating Performance Approach

question 92

True/False

The accounting profession has adopted a current operating performance approach to income reporting.

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Definitions:

Negotiable Warehouse Receipt

A document issued by a warehouse listing goods being stored that is transferable by endorsement, allowing for the trading of the document as if it were the goods themselves.

Sale Or Return

A contract in which the seller delivers a quantity of goods to the buyer on the understanding that if the buyer desires to retain, use, or sell any portion of the goods, he will consider such part as having been sold to him, and that he will return the balance or hold it as bailee for the seller.

Risk Of Loss

Refers to the legal responsibility regarding who bears the cost of damage, destruction, or theft of goods during a transaction or after it, until delivery.

F.O.B. Seattle

A commercial term indicating that the seller of goods is responsible for them until they are loaded on board a shipping vessel in Seattle, at which point the buyer assumes risk and responsibility.