What is the difference between comparability and consistency?
Comparability allows comparisons to be made between or among companies. Even though a certain amount of freedom exists in selecting accounting principles, when this information is disclosed in the financial statements, users can still compare the information when they know what principle is used. Consistency involves the relationship between a set of numbers over several periods, but within one company only, unlike comparability that can be between or among companies.
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GE operates a company trading site where it posts purchasing needs, invites bids, negotiates terms, and places orders. This is an example of a(n) ________
A) company buying site B) intranet link C) search engine D) trading exchange E) reverse auction
The accounting concept that requires every business to be accounted for separately from other business entities, including its owner or owners is known as the:
A. Revenue recognition principle. B. Going-concern assumption. C. Time-period assumption. D. Business entity assumption. E. Measurement (Cost) principle.
Under the Negotiable Instruments Article of the UCC, which of the following statements is correct regarding a check?
a. A check is a promise to pay money. b. A check is an order to pay money. c. A check does not need to be payable on demand. d. A check does not need to be drawn on a bank.
The goal of the ________ is to make sure the new system works as it was defined
A) functional staff B) PMO C) technical staff D) Steering Committee