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.

Incorporate one-time expenses and their timing into capital budgeting projects.

Evaluate decisions based on the after-tax discount rate and discount factors.

Assess the impact of equipment's useful life and salvage value on the project's value.

Identify the incremental sales and cash operating expenses related to a project.

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Definitions:

Prospective Customers

Individuals or organizations potentially interested in purchasing a company's products or services but have not yet done so.

Sales Engineer

A professional who combines technical knowledge with sales skills to provide advice and support on a range of products or services.

Technical Expertise

The specialized knowledge, skills, and experience required to perform specific tasks, especially in technical fields.

Selling Situation

The circumstances or environment in which a transaction between a buyer and a seller takes place, including factors like market conditions and customer needs.