The revenue recognition principle guides accountants in Answer: D determine when to record revenues. The revenue recognition principle lets accountants know when they need to record revenues and at what amount to record. The revenue recognition principle states not to record revenue until it has been earned in full.
Answer: B
Explanation:
you can pass on the right if you are driving on a one way road.
Answer:
False
Explanation:
It should be detailed, clear and straight to the point. It doesn't have to be anything complicated.
Answer:
A. Liquidity management is a balancing act, managers try to find liquidity levels that are neither too high not too low.
Explanation:
Maintaining proper liquidity is an important financial objective of management. Proper liquidity management demands that an entity should be able to meet his short term financial obligation and making sure that liquid assets of the entity are not idle. In order to achieve this, the best way to go is to maintain a level that is neither too high and not too low. Not too high means the entity is not holding too much cash or liquid assets than it currently need to meet its short term financial obligation.
For example, not keeping too much cash in current account but investing them in interest-earning investment assets.
Not too low means the cash or liquid assets held by an entity should not less than the amount needed to meet its short term financial obligation. For example, making sure that the entity has enough cash or readily convertible liquid assets that can be used to pay vendors, rent, interest and meet other short term financial obligation.
Option B is false because keeping too much does not help to maximize short term earnings which is a feature of proper liquidity management. Option C is wrong because there is no guideline to support that deferring coupon payment won`t attract payment and this does not connote proper liquidity management.
Option D is obviously false and does not describe proper liquidity management.
Answer:
B) Inventory turnover ratios
Explanation:
Inventory turnover measures how many times a business sells and replaces its merchandise or materials inventory during an accounting period, usually a year.
One of the basic goals of JIT is to lower the total inventories in a company, therefore increasing the inventory turnover ratio. This reduces the company's operating costs.
