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For Company aBay Inc. in the previous question, it has two possible accounting rules to choose from. Option A: report the gross amount of sales
For Company aBay Inc. in the previous question, it has two possible accounting rules to choose from.
Option A: report the gross amount of sales proceeds received from their customers;
Option B: report the net difference between sales proceeds and their cost.
Which accounting rule will report a higher level of net income?
a Option A
b Option B
c Option A and B will report the same amount of net income
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