Unformatted text preview: this will cause net income for the period to be over-stated TRUE 6. Forming a special purpose entity (SPE) is a common way companies securitize receivables TRUE 7. If a company factors its accounts receivables this will have the effect of making its cash cycle appear shorter TRUE 8. Under GAAP the choice of inventory costing method (LIFO,FIFO, etc) must be determined by the physical flow of the goods FALSE...
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- Spring '11
- Balance Sheet, Generally Accepted Accounting Principles, cash operating cycle, purpose enti ty