Which of the Following Is NOT Used to Determine Whether

question 99

Multiple Choice

Which of the following is NOT used to determine whether an accommodation is reasonable?

• A)The size of the organization
• B)The nature of the accommodation
• C)The profitability of the organization
• D)The financial resources of the applicant

---

Definitions:

Income Recognition

The accounting principle that revenue should only be recognized after the business has fulfilled its obligations and the payment is certain.

Direct Method

A method for creating a cash flow statement where actual cash flow information from operations is used rather than adjustments to net income.

Operating Cash Receipts

Cash received by a company from its core business operations.

Cash Flow

Indicates the total amount of money being transferred into and out of a business, particularly affecting its liquidity.