Which of the Following Is NOT a Consideration When Accounting

question 140

Multiple Choice

Which of the following is NOT a consideration when accounting for scrap?

• A)the timing of the recognition of proceeds from disposal
• B)inventory costing, including when and how to affect operating income
• C)planning and control includes physical tracking
• D)decisions as to whether to group scrap with reworked units
• E)the reduction from theft

---

Definitions:

Working Capital

The difference between a company's current assets and its current liabilities, indicating the short-term liquidity of the business.

Income Tax Rate

The proportion of earnings handed over to the government as tax.

After-Tax Discount Rate

The discount rate that takes into account the effect of taxes on the net income from an investment.

Straight-Line Depreciation

A tactic for parceling out the expense of a tangible asset through its effective duration in equal yearly quotas.