Which one of the following statements related to an …. accounting is used.

Corporate Finance

Which one of the following statements related to an income statement is correct? Assume accrual accounting is used.

The addition to retained earnings is equal to net income plus dividends paid.
Credit sales are recorded on the income statement when the cash from the sale is collected.
The labor costs for producing a product are expensed when the product is sold.
Depreciation increases the marginal tax rate.

Note

Which one of the following statements related to an income statement is correct? Assume accrual accounting is used the labor costs for producing a product are expensed when the product is sold.

Tags: Financial Statements, Taxes, and Cash Flow

Note

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