Which Statement About Leased Departments Is Not Correct

question 96

Multiple Choice

Which statement about leased departments is not correct?

• A)The proprietor of a leased department is responsible for all aspects of its operations.
• B)The leasor provides management assistance,training,and troubleshooting for the leasee.
• C)The leasor imposes various stipulations on the leasee to ensure consistency and coordination.
• D)Leased departments tend to operate on the fringe of a department store's product lines.

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Definitions:

GAAP

Generally Accepted Accounting Principles, standard guidelines and procedures for financial accounting and reporting in the U.S.

Indirect Method

A method used in cash flow statements where net income is adjusted for items that affected reported net income but did not result in an actual cash flow.

Direct Method

A cash flow statement presentation that lists actual cash inflows and outflows from operating activities.

FASB

The Financial Accounting Standards Board (FASB) is an organization responsible for establishing and improving financial accounting standards in the United States.