Which of the Following Is True Regarding the Alternative Ways

question 9

Multiple Choice

Which of the following is true regarding the alternative ways to apply the income approach to accounting of resources acquired through government grants?

• A)expenses will be higher and net income lower if the grant is recorded as deferred revenue.
• B)expenses will be higher and net income lower if the grant is accounted for as an adjustment to the asset.
• C)depreciation expense will be higher if the grant is recorded as deferred revenue, but net income will be the same under the two alternatives.
• D)depreciation expense will be higher if the grant is recorded as an adjustment to the asset, but net income will be the same under the two alternatives.

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Definitions:

Jeffrey Wigand

A whistleblower in the tobacco industry known for exposing corporate practices concerning the addictive nature and health effects of cigarettes.

Whistle-blowing

The act of exposing any kind of information or activity that is deemed illegal, unethical, or not correct within an organization.

Unethical Behaviour

Actions that violate moral or professional principles, often harming others or compromising ethical standards.

High Need for Power

Refers to individuals who have a strong desire to influence, control, or command over others.