Which statement is false? a. the flexibility in gaap gives management discretion to use its professional opinion to choose from a range of guidelines and standards in selecting those that suit the needs of a company (e. g., fifo or lifo inventory methods,) b. nonfraudulent earnings management is accomplished within the gaap framework. c. fraudulent earnings management does not allow gaap. d. transparency is one of the five interrelated components of internal controls. e. all of the above are true.

University hero is considering expanding operations beyond its healthy sandwiches. jim axelrod, vice president of marketing, would like to add a line of smoothies with a similar health emphasis. each smoothie would include two free health supplements such as vitamins, antioxidants, and protein. jim believes smoothie sales should fill the slow mid-afternoon period. adding the line of smoothies would require purchasing additional freezer space, machinery, and equipment. jim provides the following projections of net sales, net income, and average total assets in support of his proposal. sandwichesonly sandwiches and smoothies net sales $ 750,000 $ 1,350,000 net income 120,000 210,000 average total assets 350,000 750,000 return on assetschoose numerator ÷ choose denominator = return on assets÷ = return on assets÷ = profit margin÷ = profit margin÷ = asset turnover÷ = asset turnover÷ = times