Which of the Following Is Not a True Statement About

question 29

Multiple Choice

Which of the following is not a true statement about a multiple-step income statement?

• A) Operating expenses are similar for merchandising and service enterprises.
• B) There may be a section for nonoperating activities.
• C) There may be a section for operating assets.
• D) There is a section for cost of goods sold.

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Definitions:

Pledges

Commitments made by individuals or organizations to donate a specified amount of money or assets.

Telethon Event

A televised fundraising event that encourages viewers to donate money, often for charitable purposes or emergency relief efforts.

Uncollectible

Accounts receivable that are considered unlikely to be collected, representing potential financial losses for a company.

Accounting Standards Update No. 2014-09

Accounting Standards Update No. 2014-09 is a comprehensive new revenue recognition standard issued by FASB, altering the way businesses recognize revenue from contracts with customers.