Which of the Following Statements Is TRUE

question 81

Multiple Choice

Which of the following statements is TRUE?

• A)The finance manager uses the framework of the income statement to find the operating income of the company (an accounting measure),which is also the true cash flow from operations.
• B)In accrual-based accounting,revenue is recorded at the time of sale if the revenue has been received in cash.
• C)Three fundamental issues separate net income and cash flow: accrual-based accounting,noncash expense items,and interest expense.
• D)Generally accepted accounting principles (GAAP)in the United States do not allow the use of accrual-based accounting to record revenue.

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Definitions:

Top Management Team

The group of senior executives responsible for the strategic direction and decision-making within an organization.

Integrative Thinking

A decision-making approach that involves considering various perspectives and contradictory information to generate creative and comprehensive solutions.

Cross-functional Teams

Teams composed of members from different functional areas within an organization, working together toward a common goal.

Functional Expertise

Specialized knowledge and skills within a specific field or area of professional practice.