Which of the Following Is Not True with Regard to the Accounting

question 4

Multiple Choice

Which of the following is not true with regard to the accounting for government grants?

• A) Assets may be recorded at fair value or nominal cost.
• B) Companies may use either the capital or income approach to account for the asset and the grant.
• C) Companies may apply the income approach either by recording the grant as deferred revenue or as an adjustment to the asset.
• D) None of these answer choices are correct.

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Definitions:

Goal Setting

The process of identifying specific, measurable, achievable, relevant, and time-bound objectives to be accomplished.

MBO Program

Management by Objectives, a strategic management model that aims to improve organizational performance by clearly defining objectives that are agreed upon by both management and employees.

Supervisory Coverage

The extent to which employees are monitored and guided by supervisors, ensuring that work is performed correctly and efficiently.

Job Sharing

An alternative work schedule in which two part-time employees divide the work of a full-time job.