Which of the following is not recognized by the FASB as an expense recognition principle that properly matches expenses against revenues?
A) immediate recognition
B) systematic and rational allocation
C) cash payment
D) association of cause and effect
C
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In the context of power, the person using the power is known as the _____.
A. agent B. target C. source D. subject
Which of the following is considered a measure of short-term liquidity?
A) Gross profit percentage B) Quick ratio C) Dividend yield ratio D) Return on assets ratio
Which statement best describes the appropriateness of the following product claim in a sales letter? "Viruscan is the best virus defense product available. It offers the most sophisticated and comprehensive protection for your data."
a. The passage is appropriate, since the receiver will likely assume the comparison is with all others, even though research results are not offered. b. The passage is appropriate, since it provides vital comparative information while sparing the receiver of unnecessary and boring details. c. The passage is inappropriate, since the sender has no ethical right to compare his/her product with others. d. The passage is inappropriate unless it is followed up with facts about the comparison.
When bonds are issued at face value, ________
A) the amount of cash received depends on the amount of bond discount or premium B) for each interest payment, the amount of Interest Expense equals the amount of cash paid C) for each interest payment, the amount of Interest Expense depends on the amortization of the bond discount or premium D) the journal entry to record the issuance of the bonds includes a debit to the Bonds Payable account