Correction of an Error Is Based on

question 37

Multiple Choice

Correction of an error is based on

• A)new information that has now become available.
• B)information available at the time of preparing the financial statements.
• C)the use of hindsight.
• D)comparable industry practice.

Calculate and understand various financial ratios and their importance.

Analyze a company's liquidity position using working capital, current ratio, and acid-test (quick) ratio.

Evaluate a company's efficiency through accounts receivable turnover, inventory turnover, and the operating cycle.

Assess a company's profitability using ratios such as net profit margin, gross margin percentage, return on total assets, and return on equity.

---

Definitions:

Values

Core beliefs or principles that guide behavior and decision-making within an individual or organization.

Assumptions

Beliefs or ideas taken for granted without verification.

Social Identity Theory

A psychological framework that explains how individuals define themselves and others based on group memberships, leading to in-group favoritism and out-group discrimination.

Self-Concept

An individual's perception of themselves, including awareness of their characteristics and abilities.