· Question 3 To obtain maximum benefit from a bank reconciliation, the reconciliation should be prepared by the employee authorized to sign checks.
· Question 4 An aging of accounts receivable schedule is based on the premise that the longer the period an account remains unpaid, the greater the probability that it will eventually be collected.
· Question 5 A concentration of credit risk is a threat of nonpayment from a single customer or class of customers that could adversely affect the financial health of the company.
· Question 6 Which of the following is not a common way that managers use the balance sheet?
· Question 7 Financing activities include the purchase or sale of long-lived assets or the purchase or sale of investment securities.
· Question 8 Bathlinks Corporation has a debt to assets ratio of 73 %. This tells the user of Bathlinks’ s financial statements that
· Question 9 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