Reviewing notes paid or renewed after the balance sheet date to determine if there are unrecorded liabilities at year-end can be used to test the assertion of
A. Existence.
B. Completeness.
C. Rights and obligations.
D. Valuation and allocation.
B. Completeness.
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Under the balance sheet approach, the full change in the amount of future liability is recognized as an increase or decrease in income tax expense in the year the:
A. tax law is proposed. B. tax law is enacted. C. tax rate change is debated. D. tax law becomes effective.
Answer the following statements true (T) or false (F)
1. The cash ratio helps to determine a company's ability to meet its short-term obligations. 2. A cash ratio below 1.0 implies that the company has an insufficient amount of cash and cash equivalents to pay current liabilities. 3. A very low cash ratio does not send a strong message to investors and creditors that the company has the ability to repay its short-term debt. 4. The only time the Petty Cash account is used in a journal entry is when the account is established, increased, or decreased.
Common-size statements ________.
A) allow the users to compare numbers in relative terms rather than absolute amounts B) report dollar amounts and percentages C) create a dollar value bias D) show the same percentages that appear in a horizontal analysis
Find the area under the normal curve between the Z values 0.65 and 2.07.
A. 23.86% B. 18.11% C. 29.72% D. 31.44%