The drawback of studying absolute amounts reported in financial statements is the problem of differing materiality levels.
Answer the following statement true (T) or false (F)
True
Comparing only absolute amounts has drawbacks, however, because materiality levels differ from company to company or even from year to year for a given company. The materiality of information refers to its relative importance. An item is considered material if knowledge of it would influence the decision of a reasonably informed user.
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A company that uses the perpetual inventory system sold goods to a customer for cash for $3,500. The cost of the goods sold was $600. Which of the following journal entries correctly records this transaction?
A) Cost of Goods Sold 3,500 Sales Revenue 3,500 B) Cash 3,500 Sales Revenue 3,500 Cost of Goods Sold 600 Merchandise Inventory 600 C) Accounts Receivable 3,500 Cash 3,500 Cost of Goods Sold 600 Merchandise Inventory 600 D) Merchandise Inventory 3,500 Sales Revenue 3,500
The source population is considered to be either ________ in its size
A) finite or infinite B) fixed or variable C) known or unknown D) random or scheduled E) small or large
Managers increase coordination among functions and divisions by
A. reducing the span of control. B. implementing a mechanistic organizational structure. C. creating more managerial levels. D. developing a taller organizational structure. E. establishing liaison roles.
The distinction between real and personal property is important because how property is acquired is determined by its classification.
Answer the following statement true (T) or false (F)