Which of the following lease treatments interpret the lease contract as an operating lease?

a. A rental agreement
b. A loan equivalent
c. A sale equivalent
d. A purchase


ANSWER: A

Business

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Which of the following represents one of the purposes of the notes to financial statements?

a. To provide a place for management to justify questionable items in the statements b. To provide comparative ratios for the company's financial data c. To provide the CPA's opinion of the fairness of the financial statements d. To satisfy the need for full disclosure of all the facts relevant to a company's results and financial position

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Four underlying problems that called pre-SOX federal security law adequacy into question were addressed in the text. Discuss two of these problems

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Which of the following is considered a profitability ratio?

A) Earnings per share. B) Debt ratio. C) Quick ratio. D) Inventory turnover ratio.

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Written communication is most effective when the sender has good writing skills and the receiver has good reading skills

Indicate whether the statement is true or false

Business