GB 518 RANK Let's Do This /gb518rank.com GB 518 RANK Let's Do This /gb518rank.com | Page 19

To provide financial statements to help
external users analyze and interpret an organization's activities
To monitor and control company
activities
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