GAAP Allows Companies to Use ________ for External Reporting Purposes

question 101

Multiple Choice

GAAP allows companies to use ________ for external reporting purposes.

• A)only the traditional format of the income statement
• B)only the contribution margin format of the income statement
• C)either the traditional format or the contribution margin format
• D)the variable costing format

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Definitions:

Penal Statutes

Laws enacted to punish violations serving as deterrents against the commission of crimes.

Common Law Remedies

Legal solutions or compensations available under common law systems, typically including damages, injunctions, and restitution.

Sale of Goods Act

Legislation that regulates the sale of goods, ensuring certain standards for transactions, such as the goods being as described, of satisfactory quality, and fit for purpose.

Duty Not to Injure

A legal obligation to avoid causing harm to others, typically in the context of negligence or tort law.