Working capital is:
a. the amount of money the firm has in the bank
b. owners’ equity – liabilities
c. cash + inventory
d. owners’ equity + assets
e. current assets – current liabilities
e. current assets – current liabilities
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What is the implication for the Management Reporting System of an organization that implements the formalization of tasks principle?
When the buyer bears the transportation charge, it is called freight-out
Indicate whether the statement is true or false
When an asset is sold, a gain is calculated as the difference between
A) sale price and the depreciable cost of the asset sold. B) sale price and the carrying value of the asset sold. C) carrying value and the residual value of the asset sold. D) sale price and the original cost of the asset sold.
In evaluating the performance of a profit center manager, the manager
a. should only be evaluated on the basis of variable costs and revenues of the sub-unit. b. should be evaluated on all costs and revenues that are controllabe by the manager. c. and the sub-unit should be evaluated on the basis of same costs and revenues. d. should be evaluated on all costs and revenues that can be directly traced to the sub-unit.