For External Reporting

question 81

Multiple Choice

For external reporting:

• A)costs include amounts that reflect both current and future benefits.
• B)costs are classified as either inventoriable or period costs.
• C)costs reflect current values.
• D)there are no prescribed rules since no one is exactly sure how investors and creditors will use these.numbers

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Definitions:

Insanity Defense

A legal defense stating that a defendant was unable to understand the nature of their actions or distinguish right from wrong due to a mental disorder at the time of the crime.

Social Factors

Elements within society, such as family, education, income, and religion, that influence an individual's life choices and opportunities.

Historical Factors

Elements from the past that influence current conditions or events, often used in the context of evaluating health or psychological issues.

Justice System

The combination of institutions, procedures, laws, and codes that a society uses to enforce legal norms and adjudicate law.