Which of the Following Is NOT an Acceptable Way of Reporting

question 17

Multiple Choice

Which of the following is NOT an acceptable way of reporting a not-for-profit entity over which an organization has control?

• A)By consolidating the controlled organization in its financial statements.
• B)By providing the disclosure set out in paragraph 4450.22 of the Handbook.
• C)If the controlled organization is one of a large number of individually immaterial organizations,by adhering to the disclosure requirements set out in paragraph 4450.26 of the Handbook.
• D)By using the Equity method.

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Definitions:

Net Operating Income

The profit of a business after operating expenses are subtracted from gross income.

Break-even Point

The production level or sales volume at which total revenues equal total expenses, resulting in no net profit or loss.

Break-even Point

The level of production or sales at which the revenues of a business equal its costs, resulting in neither profit nor loss.

Total Contribution Margin

This refers to the total amount of revenue left over after deducting all variable costs, indicating the total contribution towards covering fixed costs and generating profit.