Common Terminology, but Not Definitions in U

question 59

Multiple Choice

Common terminology, but not definitions in U.S.GAAP and IFRS, often refers to the difference between sales and cost of sales as gross

• A)sales.
• B)profit.
• C)operations.
• D)all of the above
• E)none of the above

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Definitions:

Premiums

Payments made periodically to an insurance company by policyholders for coverage or to maintain a policy.

Income Recognition

The accounting principle that income should be reported in the fiscal period it is earned, regardless of when it is received.

Property

Items or assets owned by an individual or entity, which can include tangible objects like land or personal items, as well as intangible rights.

Services

Services refer to non-tangible activities provided by one party to another, often for a fee, such as consulting, entertainment, or maintenance.