单选题 Directions: Read the following passages and
determine whether the sentences are " Right" or "Wrong". If there is not enough
information to answer "Right" or "Wrong", choose "Doesn't say". Then mark the
corresponding letter on the ANSWER SHEET by drawing a single line through the
center. {{B}}Passage One{{/B}}
The normal income statement which
constitutes one of the financial statements of a company, is financial income
statement. So functional income statement is an income statement that segregates
all costs by use ; it shows revenues less cost of goods sold ( gross margin)
less selling and administrative expenses. This approach is useful for financial
reporting purpose ; it provides outsider readers with information about
company's progress and about which functional areas are being emphasized. For
management's use in the decision-making process, however, an income statement
that follows a cost behavior approach, often referred to as a Contribution
Margin Income Statement, is more valuable.
单选题
When the management of a business makes some decisions, it often refers to the normal income statement because the normal income statement is more useful in that.
【正确答案】
B
【答案解析】从段落中最后一句话For management's use in the decision-making process…as a Contribution Margin Income Statement, is more valuable可得知答案。
单选题
From the functional income statement we can see clearly the total revenue, total cost and the gross profit etc.
【正确答案】
C
【答案解析】文中只说it shows revenues less cost of goods sold (gross margin) less selling and administrative expenses，并没有说能看到"the total revenue, total cost"。
单选题
The company's prepayment to its supplier is regarded as a liability item.