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:

Ethics Competency

The ability to understand and apply ethical principles and standards to one’s professional behavior and decision-making processes.

Values and Principles

Are the fundamental beliefs and ethical guidelines that govern an individual's or organization's actions and decisions.

Honesty

The quality of being truthful, transparent, and free from deceit in one's actions and communications.

Ethics

The branch of philosophy dealing with morals, values, and principles that govern individual or group behavior.