· Question 12
Requiring employees to take vacations is a weakness in the system of i
nternal controls because it does not promote operational efficiency.
· Question 13
Solvency ratios measure the shortterm ability of the company to pay its maturing obligations.
· Question 14
The best definition of assets is the
· Question 15
The partnership form of business organization
· Question 16
Goods that have been purchased FOB destination but are in transit, sh
ould be excluded from a physical count of goods by the buyer.
· Question 17
Management may choose any inventory costing method it desires as lo
ng as the cost flow assumption chosen is consistent with the physical m
ovement of goods in the company.
· Question 18
Which of the following would not be classified as a long-term liability?
· Question 19
The economic resources that are owned by a business are called stockh
olders‘ equity.
· Question 20
An advantage of using the periodic inventory system is that it requires
less record keeping than the perpetual inventory system.
· Question 21