Income can be distorted by factors other than inflation. The most important causes of distortion for inter-industry comparisons are:
A) timing of revenue receipts and nonrecurring gains or losses.
B) tax write-off policy and use of different inventory methods.
C) All of these.
D) None of these.

Question

Quizplus · Accepted Answer

Both timing of revenue receipts and nonrecurring gains/losses as well as tax write-off policy and inventory methods can affect income and distort inter-industry comparisons. Therefore, the best choice is C: All of these.

Income Can Be Distorted by Factors Other Than Inflation