Explain why purchasing is important to a small business.
What will be an ideal response?
A business will need products provided by someone, and the wide variety of items available requires careful study to ensure proper selection. Purchasing determines a company's needs and then finds, orders, and assures delivery of those items. Some items, such as electricity, come from only one supplier, but even they require a careful analysis to obtain them at a favorable cost. Others, such as insurance, machines, and equipment also require special attention because they are often expensive and are purchased infrequently. Still other items, such as paper clips and welding rods, are relatively cheap, and they are purchased routinely. Finally, materials that are part of the company's main product and have a high cost relative to revenue will take up a large amount of time.
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The financial statements are prepared from the ________.
A) adjusted trial balance B) chart of accounts C) statement of retained earnings D) unadjusted trial balance
Compare and contrast task and relationship conflict.
What will be an ideal response?
Discuss whether alternative accounting policies have a systematic effect on security prices and what this implies about the information content of accounting policy changes. Include a discussion of previous research in this area.
What will be an ideal response?
Cash investments by owners increase both equity and assets
Indicate whether the statement is true or false