Which Is the True Statement

question 169

Multiple Choice

Which is the true statement?

• A) In a CVP income statement costs and expenses are classified only by function.
• B) The CVP income statement is prepared for both internal and external use.
• C) The CVP income statement shows contribution margin instead of gross profit.
• D) In a traditional income statement costs and expenses are classified as either variable or fixed.

---

Definitions:

Innocent Misrepresentation

A false statement made by one party to another without knowing it was false, which may lead to the rescission of a contract.

Material

Important. In securities law, a fact is material if a reasonable person would consider it important in his decision to purchase shares or to vote shares.

Rescind

To withdraw, negate, or overturn a law, order, or agreement.

Asserted

Stated with confidence or declared strongly, typically without providing evidence or proof.