ACC 556 STR Course Great Wisdom / tutorialrank.com ACC 556 STR Course Great Wisdom / tutorialrank.com | Page 74

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.