Distinguish between profitability and liquidity
Profitability is the ability to earn enough income to attract and hold investment capital, whereas liquidity means having enough funds on hand to pay debts when they fall due.
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Which of the following types of qualitative research elicits information related to how customers use products in everyday life?
A) phenomenological research B) exploratory research C) clinical research D) scientific research
The secondary qualitative characteristics of accounting information are
a. relevance and reliability. b. comparability and consistency. c. understandability and decision usefulness. d. materiality and conservatism.
The joint efforts of the FASB and the IASB to set forth qualitative characteristics of financial reporting information have led to which of the following tentative enhancing qualitative characteristics?
a. comparability, only b. verifiability, only c. understandability, only d. timeliness, only e. comparability, verifiability, timeliness, and understandability
Normand Corporation uses the FIFO method in its process costing system. Data concerning the first processing department for the most recent month are listed below: Beginning work in process inventory: Units in beginning work in process inventory 700 Materials costs$8,700 Conversion costs$3,700 Percent complete with respect to materials 70%Percent complete with respect to conversion 10%Units started into production during the month 6,400 Units transferred to the next department during the month 5,600 Materials costs added during the month$92,200 Conversion costs added during the month$269,600 Ending work in process inventory: Units in ending work in process inventory 1,500 Percent complete with respect to materials 80%Percent complete with respect to
conversion 25% What are the equivalent units for materials for the month in the first processing department? A. 4,900 B. 1,200 C. 7,100 D. 6,310