Which of the Following Statements Is CORRECT

question 46

Multiple Choice

Which of the following statements is CORRECT?

• A) The focal point of the income statement is the cash account because that account cannot be manipulated by "accounting tricks."
• B) The reported income of two otherwise identical firms cannot be manipulated by different accounting procedures provided the firms follow generally accepted accounting principles (GAAP).
• C) The reported income of two otherwise identical firms must be identical if the firms are publicly owned,provided they follow procedures that are permitted by the Securities and Exchange Commission (SEC).
• D) If a firm follows generally accepted accounting principles (GAAP),then its reported net income will be identical to its reported cash flow.
• E) The income statement for a given year is designed to give us an idea of how much the firm earned during that year.

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Definitions:

The Product

Refers to any item or service that is created through a process and is offered for sale to customers.

Productivity

The efficiency with which an organization or individual converts inputs into outputs, often measuring how much work is done in a given amount of time.

WMS

A Warehouse Management System, software that supports the day-to-day operations in a warehouse by managing and optimizing inventory, picking processes, and shipping.

Database

An organized collection of data, generally stored and accessed electronically from a computer system, designed for efficient retrieval and management of information.