GAAP Allows Companies to Use ________________ for External Reporting Purposes

question 137

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:

Experience

The knowledge or skill acquired by a person through direct involvement in or exposure to events or activities.

Middle-class Americans

Individuals or families in the United States that fall into a socio-economic group characterized by moderate income, education levels, and occupation types, typically perceived as the backbone of American economy and culture.

Spendthrifts

are individuals who spend money imprudently and extravagantly, often depleting their financial resources.

Wealth

The abundance of valuable financial assets or physical possessions which can include money, properties, and natural resources.