Owners of business firms are the only people who need accounting information.
· Question 10 Marvin Services Corporation had the following accounts and balances: If the balance of the Buildings account was $ 45,000 and the equipment was sold for $ 21,000, what would be the total of stockholders ' equity?
· Question 11 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.