Under Generally Accepted Accounting Principles,an Item Must Clearly Represent a Commitment

question 10

True/False

Under generally accepted accounting principles,an item must clearly represent a commitment to pay out funds in the future in order to be classified as a liability.

---

Definitions:

Industry Averages

Statistical metrics that summarize the average performance, behavior, or characteristic of companies within a specific industry.

Relative Position

The placement or rank of something in relation to others based on a specific criteria.

Vertical Analysis

A technique for evaluating financial statement data that expresses each item within a financial statement as a percentage of a base amount.

Net Income

The net income of a business following the subtraction of all costs and taxes from its revenue.