Which of the Following Statements Is NOT Correct

question 104

Multiple Choice

Which of the following statements is NOT correct?

• A) When economists evaluate a public policy they tend to count the benefits and costs to all individuals equally regardless of where they live.
• B) National governments usually weight the preferences of their citizens more heavily than they do the preferences of foreigners.
• C) If the gains to foreigners are counted as much as the gains to nationals are counted, Mexican immigration into the United States will look especially beneficial.
• D) Economists believe that if the United States is making decisions about its immigration policy, it should weight the benefits accruing solely to the U.S. citizens.

Assess the significance of related party transactions and subsequent events in financial reporting.

Understand the concept and application of special order pricing to increase net income.

Identify the benefits of using variable costing in short-term pricing decisions.

Explain the procedure for converting variable costing net income to absorption costing net income.

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Definitions:

Indirect Method

A method of reporting cash flows from operating activities where net income is adjusted for changes in balance sheet accounts to arrive at cash provided by or used in operating activities.

Net Income

The total profit of a company after all expenses and taxes have been deducted from total revenue, indicating the actual profit earned.

Adjusting

The act of making entries to update the financial statements to more accurately reflect revenues and expenses for a specific reporting period.

Operating Activities

The day-to-day activities of producing and selling goods and/or services, which are reflected in the cash flow statement.