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(Solved): From a lender's perspective, which of the following manufacturer's income statements should have the ...



From a lender's perspective, which of the following manufacturer's income statements should have the most reliable reported net income?

Company B recognizes revenue at the time the contract is signed, and expenses when cash is
actually paid out.
Company D recognizes revenue and related expenses as each shipment is made and accepted.
Company A recognizes revenue and expenses at the time a contract is signed.
Company C recognizes all revenue at the time a contract is completed, and each related expense
when cash is actually paid out.



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Company D. As per matching concept, all the expenses
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