Which of the Following Statements Is FALSE

question 73

Multiple Choice

Which of the following statements is FALSE?

• A) The income statement is put together at a specific point in time (end of a business quarter, or business year) and so the sale could be in one period and the cash received in another period.
• B) The income statement contains the set of expenses associated with the products or services sold during the current operating period, with those expenses not associated with current cash flow labeled as non-cash expense items.
• C) Depreciation is a current expense of a cash outflow in the current period.
• D) Companies depreciate fixed assets (such as office furniture, equipment, machinery, and buildings) over an assigned time period, but the initial cash outlay for the fixed asset typically occurs at the time the asset is acquired by the firm.

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Definitions:

Sales Call Allocation

The process of determining and assigning the appropriate amount of sales calls to different prospects or customers.

Nonselling Time

Periods during a salesperson's schedule that are not directly involved in selling activities, such as travel, administrative tasks, and training.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including materials and labor.