To provide information on both the
costs and benefits of managing products and services
To know what, when and how much to
produce
Question 9.
Question :
The debt ratio is used:
To measure the amount of equity
relative to the expenses
To reflect the risk associated with a
company's debts
Only by banks when a business applies
for a loan
To determine how much debt a firm
should pay off
Question 10. Question :
The principle that (1) requires
revenue to be recognized at the time it is earned, (2) allows
the inflow of assets associated with revenue to be in a form
other than cash and (3) measures the amount of revenue as the
cash plus the cash equivalent value of any non-cash assets
received from customers in exchange for goods or services is
called the:
Going-concern principle
Cost principle
Revenue recognition principle