All of the Following Are All Justifications for the Use

question 47

Multiple Choice

All of the following are all justifications for the use of the comprehensive allocation method except for:

• A)The matching principle is best served by using the comprehensive allocation method.
• B)Proponents say that this provides a more accurate figure than does the comprehensive allocation method.
• C)Income tax is an aggregate measure, applied to the overall operations of the company.
• D)Proponents say that a future cash flow impact arises from all temporary differences.

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Definitions:

Days' Sales in Inventory

A financial metric that indicates the average time in days that a company takes to turn its inventory into sales.

Dividend Yield

A financial metric that measures the annual dividends issued by a company compared to the price of its shares.

Total Asset Turnover

A financial ratio that measures how efficiently a company uses its assets to generate sales revenue.

Inventory Turnover

A figure representing the number of times a business's stock is sold and restocked during a certain period.