Generally Accepted Accounting Principles Are Ambiguous in the Determination of a Firm's

question 50

Multiple Choice

Generally accepted accounting principles are ambiguous in the determination of a firm's net income because:

• A)it does not reflect actual cash inflows and outflows of the firm
• B)stock dividends are difficult to forecast
• C)depreciation is a cash outlay but is not reflected as such
• D)tax laws change regularly which cause the firm to misjudge its true tax obligation

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