The "Apparent, " but Not the "True, " Financial Position

question 102

True/False

The "apparent, " but not the "true, " financial position of a company whose sales are seasonal can differ dramatically, depending on the time of year when the financial statements are constructed.

---

Definitions:

Straight-Line Methods

Straight-line methods are used in accounting to allocate the cost of an asset evenly over its useful life for the purposes of depreciation.