A new business needs to manage cash flows carefully because if a firm runs out of cash, it is out of business.
Answer the following statement true (T) or false (F)
True
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Managers of organizations are hired by Boards of Directors to perform responsibilities such as the implementation of internal control
a. True b. False Indicate whether the statement is true or false
Which of the following is recommended to improve corporate governance?
a. Getting directors involved in the day-to-day management issues of the firm. b. Instituting an employee vote to hire or fire the CEO. c. Setting up “golden parachutes” for CEOs. d. Instituting a “cradle-to-grave” conceptualization of all new products. e. Ensuring that directors are clearly separated in their authority from the CEO.
To simplify, clarify, and modernize the law governing commercial transactions, the UCC permits the use of "open terms" in sales contracts. In the use of "open terms," which of the following is true?
a. The court will use market value and other comparable sales to determine what a reasonable price would have been at the time of delivery if the parties have not settled the price in the contract. b. If time of payment is not mentioned in the contract, payment within a commercially reasonable time is presumed. c. If the contract permits the buyer or seller to determine the price during contract performance, the UCC requires the party to do so in good faith. d. All of the above are true.
Reporting the details of notes is consistent with which accounting principle that requires financial statements (including footnotes) to report all relevant information?
A. Full disclosure. B. Expense recognition (matching). C. Evaluation. D. Relevance. E. Materiality.