The Income Statement Prepared for External Reporting Is

question 159

Multiple Choice

The income statement prepared for external reporting is

• A)based on a functional classification.
• B)referred to as absorption-costing income.
• C)called full-costing income.
• D)all of the above.

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Definitions:

T-bill

Short-term government securities issued at a discount from the face value and maturing at par, used to finance government debt.

Issue Date

The specific date on which a financial instrument is issued or becomes effective.

Simple Rate of Interest

Interest calculated only on the principal amount of a loan or deposit, without compounding.

Commercial Paper

An unsecured, short-term debt instrument issued by a corporation, typically used for the financing of payroll, accounts payable, inventories, and meeting other short-term liabilities.