Unformatted text preview: cause net income for the period to be overstated. 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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- Fall '11
- Balance Sheet, Generally Accepted Accounting Principles, cash operating cycle, special purpose entity, short-term obligations