A Company That Follows Private Entity GAAP

question 48

Multiple Choice

A company that follows private entity GAAP

• A)must not disclose the cash flow per share
• B)can disclose the cash flow per share
• C)can disclose the cash flow per share if it makes a special election to do so
• D)None of these

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Definitions:

Transfer Price

The price charged one decentralized unit by another for the goods or services provided.

DuPont Formula

An expanded expression of return on investment determined by multiplying the profit margin by the investment turnover.

Financial Information

Refers to data related to the financial performance and position of a business or individual, including details on income, expenses, assets, and liabilities.

Nonfinancial Information

Information that is not related to money or finances, often concerning the operational or strategic aspects of a business.