Accounting information is used by creditors to decide whether to invest in a company's stock.

Answer the following statement true (T) or false (F)


False

Creditors lend money to a company.

Business

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Because the allowance method results in better matching, accounting standards require its use rather than the direct write-off method, unless bad debts are immaterial

a. True b. False Indicate whether the statement is true or false

Business

For a merchandising company, what is the formula used to determine the amount of merchandise inventory to be purchased?

What will be an ideal response?

Business

All of the following are duties of the mortgagee under the standard mortgage clause EXCEPT

A) to reimburse the insurer for any loss payments. B) to notify the insurer of any change in ownership of the property of which the mortgagee is aware. C) to provide a proof of loss form if the insured fails to do so. D) to pay the premium if the insured fails to do so.

Business

Why is the variance of a portfolio of internationally diversified stocks likely to be lower than the variance of a portfolio of U.S. stocks?

What will be an ideal response?

Business