For External Reporting ________

question 104

Multiple Choice

For external reporting ________.

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

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Definitions:

Cash Receipts

The total amount of money, including cash, checks, and credit card payments, received by a business during a given period.

Disbursements Method

A financial accounting method that records the cash disbursements or payments made by a business.

Schedule B

In tax documentation, Schedule B is often used to report interest and dividend income exceeding certain threshold amounts set by tax authorities.

Taxable Interest

Interest income that is subject to income tax, including interest from savings accounts, bonds, loans, and certificates of deposit.