Which of the Following Supports the Use of "Simplified GAAP

question 9

Multiple Choice

Which of the following supports the use of "simplified GAAP" for private companies?

• A)Private companies usually have less complex business models.
• B)The financial statement users of private companies tend to have first-hand information.
• C)Private companies tend to have fewer users.
• D)All of these

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Definitions:

Net Income

The net income of a business following the subtraction of all costs and taxes from its revenue.

Net Sales

The revenue a company earns from goods sold or services provided after returns, allowances for damaged goods, and discounts are subtracted.

Cost Of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including the cost of the materials and labor directly involved in creating the product.

Percentage

A way of expressing a number as a fraction of 100, denoted by the symbol %.