Which If the Following Is a Negative Consequence of Recording

question 24

Multiple Choice

Which if the following is a negative consequence of recording byproducts in the accounting records when the sale occurs?

• A) the revenue from the byproducts is usually fairly large and the accounting records will be distorted
• B) earnings cannot be timed under this method
• C) managers can be tempted to stockpile byproducts
• D) it involves complex calculations compared to the production method

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Definitions:

Macronucleus

A large nucleus found, along with one or several micronuclei, in ciliates. The macronucleus regulates metabolism and growth. Compare with micronucleus.

Ciliates

A group of protozoans characterized by the presence of hair-like structures called cilia, used for movement and feeding.

Diplomonads

Small, mostly parasitic excavates with one or two nuclei, no functional mitochondria, and one to four flagella.

Excavates

Flagellated unicellular protists, many of which have a deep (excavated) oral groove; include diplomonds, parabasilids, and euglenoids.