Which of the Following Is True of the Statement of Net

question 91

Multiple Choice

Which of the following is true of the Statement of Net Assets for proprietary funds?

• A) a classified format is used in which current assets, noncurrent assets, current liabilities, and noncurrent liabilities are presented separately.
• B) separate disclosure is required for major enterprise funds and a total for all non-major enterprise funds
• C) Neither A nor B are correct.
• D) Both A and B are correct.

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Definitions:

Gross Profit

The difference between revenue and the cost of goods sold, indicating the profitability of a company's core activities.

Goods Available for Sale

The total quantity of goods that a company has in its stock ready to sell at the end of a financial period.

Absorption Costing

An accounting method that includes all manufacturing costs — direct materials, direct labor, and both variable and fixed overhead — in the cost of a product.

Variable Costing

A costing method that includes only variable production costs in product cost calculations, used for internal decision-making.