An Item Is Considered Material If

question 139

Multiple Choice

An item is considered material if

• A)it does not cost a lot of money.
• B)it is of a tangible good.
• C)its size is likely to influence the decision of an investor or creditor.
• D)the cost of reporting the item is greater than its benefits.

Understand the concept of transactional leadership and its focus on exchanges between leader and followers.

Recognize the significance of moral and ethical considerations in transformational leadership.

Examine how leadership theories are applied in various disciplines and contexts.

Understand the role of motivation and personal characteristics in leadership effectiveness.

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Definitions:

Asset Turnover Ratio

A financial metric that measures the efficiency of a company in generating sales from its assets.

Net Sales

The revenue from goods or services sold after deducting returns, allowances for damaged or missing goods, and discounts.

Total Assets

The sum of all current and non-current assets owned by a company, representing its total economic resources.

Gain On Disposal

A profit realized from the sale of a non-current asset, exceeding its carrying amount on the books.