When the perpetual inventory system is used, the inventory sold is shown on the income statement as

A) cost of merchandise sold
B) purchases
C) purchases returns and allowances
D) net purchases


A

Business

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As the risk of material misstatement increases, what happens with detection risk?

a. Medium increase. b. Stay the same. c. Decrease. d. Severely increase.

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The quick ratio:

a. compares a company's cost of goods sold during a period to its average inventory balance during that period. b. measures the degree to which a company could pay off its current liabilities immediately. c. measures a company's ability to make and collect sales. d. compares assets that should be turned into cash within one year to liabilities that should be paid within one year.

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The market segment section of a marketing plan covers market segmentation, targeting, and

positioning. Indicate whether the statement is true or false

Business

Which of the following is not true about recording statutes in connection with security interests?

A) A deed of trust is valid between borrower and lender even if the deed of trust is not properly recorded. B) A mortgage that has not been properly recorded is not effective against later purchasers of a piece of property. C) A mortgage is valid between the borrower and lender even if the mortgage is not properly recorded. D) Most of the provisions for recording these interests are contained in federal statutes.

Business