GASB Utilizes Two Additional Elements That Do Not Appear in the Balance

question 33

True/False

GASB utilizes two additional elements that do not appear in the balance sheets of nongovernmental organizations: deferred inflows and deferred outflows of resources.

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Definitions:

Contribution Format

A method of income statement presentation where all variable costs are subtracted from sales to find the contribution margin, followed by the deduction of fixed costs to determine net operating income.

Traceable Fixed Expenses

Fixed costs directly associated with a specific department or product, which would disappear if the department or product were eliminated.

Break-even

The point at which total revenues equal total costs, resulting in no net loss or gain.

Sales Dollars

The total monetary value of sales transactions made within a specific period, reflecting the revenue generated from selling goods or services.