Which of the Following Events Most Likely Would Indicate the Existence

question 374

Multiple Choice

Which of the following events most likely would indicate the existence of related parties?

• A) Granting stock options to key executives at favorable prices.
• B) High turnover of senior management and members of the board of directors.
• C) Failure to correct internal control weaknesses on a timely basis.
• D) Selling real estate at a price significantly different from appraised value.

Calculate inventory turnover and interpret its significance.

Derive cost of goods sold using various inventory methods.

Analyze the impact of inventory valuation choices on financial ratios and business decisions.

Understand the accounting treatment for merchandise returns and allowances.

---

Definitions:

Theory

A system of ideas intended to explain something, based on general principles independent of the thing to be explained, often used as a framework for scientific or philosophical understanding.

Economic Stability

A state in which financial markets and the economy are able to function efficiently and enduringly, free from extreme fluctuations.

National Output

National Output is the total value of all goods and services produced by an economy over a specific period, typically measured as GDP.