In Practice,most Companies Use the Discrete Approach in Preparing Their

question 12

Multiple Choice

In practice,most companies use the discrete approach in preparing their internal interim financial statements.Which of the following costs is usually not included in the financial statements?

• A)Insurance
• B)Income taxes
• C)Maintenance
• D)Bonuses to employees

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Definitions:

Sherman Act

A landmark federal statute in the field of United States antitrust law passed in 1890 to prohibit monopolies and restrictive trade practices.

Monopolies

The exclusive possession or control of the supply or trade in a service or commodity, often regarded negatively because it restricts competition.

Cease And Desist

A legal order or directive to stop alleged illegal activities.

Federal Trade Commission

A federal agency of the United States established to promote consumer protection and eliminate and prevent anticompetitive business practices.