Acc556 Midterm Exam

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ACC556 Midterm Exam
Buy Now From Below: http://www.homeworkarena.com/acc556-midterm-exam Question 1 A concentration of credit risk is a threat of nonpayment from a single customer or class of customers that could adversely affect the financial health of the company. Question 2 Expense recognition is tied to revenue recognition Question 3

An aging of accounts receivable schedule is based on the premise that the longer the period an account remains unpaid, the greater the probability that it will eventually be collected.

Question 4

Which of the following would not be classified as a long-term liability?

Question 5

Requiring employees to take vacations is a weakness in the system of internal controls because it does not promote operational efficiency.

Question 6

Owners of business firms are the only people who need accounting information. Question 7

An advantage of using the periodic inventory system is that it requires less record keeping than the perpetual inventory system.

Question 8

The partnership form of business organization

Question 9

Financing activities include the purchase or sale of long-lived assets or the purchase or sale of investment securities.

Question 10

Bathlinks Corporation has a debt to assets ratio of 73%. This tells the user of Bathlinks’s financial statements that

Question 11

Management may choose any inventory costing method it desires as long as the cost flow assumption chosen is consistent with the physical movement of goods in the company.

Question 12

Use the following data to calculate the current ratio.
Carne Auto Supplies
Balance Sheet
December 31, 2014

Cash $ 35,000…...

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