AIS Is an Important Area of Study for Future Accountants

question 24

Multiple Choice

AIS is an important area of study for future accountants because a well-designed AIS can respond to many elements of the conceptual framework.Which of the following statements is most true?

• A)Land is reported as an asset on the balance sheet; assets are one element of financial statements in the conceptual framework.
• B)The difference between land's current market value and its historical cost is reported as a gain on the income statement; gains are one element of financial statements in the conceptual framework.
• C)Because of the qualitative characteristic of consistency, publicly traded corporations cannot change their accounting methods.
• D)Because of the qualitative characteristic of reliability, publicly traded corporations cannot change their accounting methods.

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Definitions:

Private-label Brands

Brands that are owned and sold by a retailer or distributor, not the manufacturer, often positioned as cost-effective alternatives to national brands.

Store Brands

Products that are manufactured or provided by a retailer under its own label, typically positioned as lower-cost alternatives to national brands.

Private-label Brands

Brands that are owned by a retailer or supplier but contracted out to another manufacturer to produce.

Co-branding

A marketing partnership between at least two different brands of goods or services, aiming to combine the market strength, brand awareness, positive associations, and cachet of two or more brands to compel consumers to pay a greater premium for them.