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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Definitions:

Video Game

An electronic game that involves interaction with a user interface to generate visual feedback on a screen.

REM Sleep

A stage of sleep characterized by rapid eye movements, increased respiratory rate, and a high level of brain activity; often associated with vivid dreams.

Dreaming

The experience of envisioned images, sounds, or other sensations during sleep, particularly during the rapid eye movement (REM) stage.

Alpha Waves

Brain rhythms detectable by EEG, typically associated with relaxed, wakeful states, and indicating a lack of arousal in most individuals.