Prepayments do not have which of the following characteristics?
a. Unexpired costs for which payment has been made.
b. Valuation: use carrying cost.
c. Liquidity: not an issue since no cash is expected to be received.
d. Usually classified as a liability.
d
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Lottony, Inc is concerned about its profitability for the current year, since its profit margin has dropped 10% since last year. Which of the following is the least useful comparison in evaluating the drop in Lottony' profit margin?
a. Comparison with the industry average for the current year b. Comparison with its current ratio for the current year c. Comparison with the profit margins for its major competitors for the current year d. Comparison with its profit margins for the past five years
The liability concept that can result in one party having to pay for more than its proportionate share of damages is called:
a. proportionate liability. b. compensatory liability. c. joint and several liability. d. punitive liability.
Name three of the four guides to ethical behavior outlined by the book.
What will be an ideal response?
Corporations can be good citizens by promoting goals that society deems worthwhile.
Answer the following statement true (T) or false (F)