MATCHING -Reasonably Appearing Able to Do Something Now

question 18

Multiple Choice

MATCHING
-reasonably appearing able to do something now

• A)assault
• B)apprehension
• C)harmful
• D)offensive
• E)reasonable
• F)imminent
• G)conditional threat
• H)apparent present ability
• I)transferred intent
• J)act

Analyze the impact of prospective adjustments on financial statements.

Assess the effects of changes in inventory valuation methods on financial statements.

Understand the classification of different types of activities in a statement of cash flows (operating, investing, and financing activities).

Identify adjustments needed for the computation of cash flows from operating activities using the indirect method.

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Definitions:

Gross Profit Rate

The ratio of gross profit to net sales, showing the percentage of revenue that exceeds the cost of goods sold.

Sales Returns and Allowances

Accounts that reduce the total gross sales revenue due to products being returned by customers or allowances for damaged goods.

Purchase Discounts

Reductions in price given by the seller to the buyer for early payment or for buying in bulk.

Freight-In

The cost associated with transporting goods into a business, usually included in the inventory cost of purchased goods.