Which of the Following Statements Is Correct

question 93

Multiple Choice

Which of the following statements is correct?

• A)A current ratio of 1.60 means the company's current assets are probably not sufficient to pay its current liabilities.
• B)The separate entity assumption requires that the financial activities of the owners of a company be reported on the company's balance sheet.
• C)The cost principle states that recording activities at cost will result in the balance sheet representing the true value of the company.
• D)A transaction is recorded if it has a measurable financial effect on the assets,liabilities or stockholders' equity of a business.

---

Definitions:

Social Norms

Shared standards of behavior that are considered acceptable within a group or society.

Social Interaction

The process by which individuals act and react in relation to others, influencing and being influenced by the behaviors, feelings, and thoughts of each other.

Culture

The shared beliefs, practices, norms, values, and artifacts that characterize a group of people or society.

Traditions

Customs or beliefs passed down within a group or society with symbolic meaning or special significance.