The business entity principle means that accounting information reflects a presumption that the business will continue operating instead of being closed or sold.

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


False

Business

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______________________________ ensures that the organization protects its resources by dealing only with customers who have demonstrated an ability to satisfy their liabilities

Fill in the blank(s) with correct word

Business

Inventory turnover

A. is calculated by dividing accounts receivable by average inventory. B. is calculated by dividing accounts receivable by net sales. C. equals net sales minus cost of goods sold divided by average turnover. D. equals total assets minus current assets divided by average inventory. E. is calculated by dividing cost of goods sold by average inventory.

Business

Which equation is correct?

a. Assets = Liabilities + Contributed Capital - Dividends b. Shareholders' Equity = Assets - Liabilities + Contributed Capital + Net Income c. Shareholders' Equity = Contributed Capital + Retained Earnings + Net Income - Dividends d. Retained Earnings = Net Income + Dividends e. none of the above

Business

Which type of planning is in accord with the principles that subordinates should have minimal involvement in retail planning?

a. top-down b. short range c. bottom-up d. long range

Business