When a company can prove it is worth more than its balance sheet indicates, it may record some goodwill

Indicate whether the statement is true or false


F

Business

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In a sale or return contract, the risk of loss and title is with the seller even when the buyer takes possession of the goods

Indicate whether the statement is true or false

Business

Why does the Federal Arbitration Act (FAA) want to limit a court's power over an arbitration award?

What will be an ideal response?

Business

Which of the following statements regarding the analysis of absolute amounts of various accounts reported on the financial statements is incorrect?

A. To correctly evaluate an absolute amount, the analyst must consider its relative importance. B. Economic statistics such as the gross national product are built upon totals of absolute amounts reported by businesses. C. Using absolute amounts eliminates the problem of varying materiality levels. D. Financial statement users with expertise in particular industries can look at absolute amounts and assess a company's performance in a certain area.

Business

Charles and Ellen, an unmarried couple, run an ice cream store. The business is not incorporated and they have filed no formation papers with the state. Their business is a

a. sole proprietorship. b. partnership. c. franchise. d. limited liability company.

Business