A Sound Reason for Reporting Revenue from Byproducts as an Income

question 120

True/False

A sound reason for reporting revenue from byproducts as an income statement item at the time of sale is to lessen the chance of managers managing reported earnings.

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Definitions:

Sarbanes-Oxley Act

A U.S. law enacted in 2002 to protect investors by improving the accuracy and reliability of corporate disclosures.

Accountability

The obligation of individuals or organizations to account for their activities, accept responsibility for them, and disclose the results in a transparent manner.

Nonprofit Organizations

Entities that operate for a purpose other than generating profit, often focusing on addressing social, educational, charitable, or religious objectives.

Logic Model

A systematic and visual way to present the relationship between the resources, activities, outputs, and expected outcomes of a program or project.