Consistent use of the same accounting principles and methods is necessary for meaningful analysis of trends within a company.
· Question 12
Requiring employees to take vacations is a weakness in the system of internal controls because it does not promote operational efficiency.
· Question 13
Solvency ratios measure the short-term 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, should be excluded from a physical count of goods by the buyer.
· Question 17
Management may choose any inventory costing method it desires as long as the cost flow assumption chosen is consistent with the physical movement 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 stockholders‘ equity.