The article informative or misleading discusses a

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6. The article "Informative or misleading" discusses a Canadian research study into the use of pro forma reporting. Which of the following statements is correct? A) Pro forma reporting refers to highlighting selected GAAP numbers in the press releases of companies. B) Pro forma reporting frequently involves adjusting GAAP earnings for non-recurring items or costs related to major business reorganization activities. C) Pro forma reporting refers to including information in the financial statements about expected future activities and their financial implications. D) The researchers found that pro forma reporting is much less common since Enron and passage of the Sarbanes-Oxley legislation. 7. When the actual earnings reported exceed the expected earnings for a company 11
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8. In applying the revenue principle to a given transaction, the most important moment or period in time is when the 9. On January 1, 20B, the ledger of Global Corporation correctly showed supplies inventory of $500. During 20B, supplies purchases amounted to $700. A count (inventory) of supplies on hand at December 31, 20B, showed $400. The 20B income statement should report supplies expense amounting to 10. A cash inflow from financing activities includes A) proceeds from selling investments in equity securities of another company. B) proceeds from selling equipment. C) proceeds from issuance of bonds payable. D) receipt of interest payments. 11. The operating cycle of a business is best defined as
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