For external reporting purposes, U.S. GAAP allows companies to use
A)either the traditional format or the contribution margin format.
B)only the contribution margin format of the income statement.
C)only the traditional format of the income statement.
D)the variable costing format.

Question

Quizplus · Accepted Answer

U.S. GAAP only allows companies to use the traditional format of the income statement for external reporting purposes. While companies may use other formats for internal reporting or management purposes, GAAP requires external reporting to follow specific guidelines and format.

For External Reporting Purposes, U