You Have Just Been Asked by Your Manager to Compile

question 141

Multiple Choice

You have just been asked by your manager to compile data on firms in California that have a specific 4-digit NAICS code. You should know

• A) that there are no 4-digit NAICS codes.
• B) that there is only one firm to find, since each firm has its own 4-digit NAICS code.
• C) that it is possible that no data will be available, even if there is one large firm in California in that 4-digit industry.
• D) that she is talking about the New Auto Industry Classification Survey.
• E) that none of these alternatives is correct.

Identify the users of accounting information and understand the various purposes for which it is used.

Describe the activities presented in the statement of cash flows and understand its importance.

Understand the balance sheet's purpose, structure, and its role in financial reporting.

Recognize the importance of ethics in accounting and the role of generally accepted accounting principles.

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Definitions:

Detriment

A state of being harmed or damaged, often used in legal contexts to describe loss or injury.

Adequacy of Consideration

Refers to a legal assessment of whether the consideration (value) given in exchange for a promise or for performance in a contract is fair and reasonable.

Unilateral Contract

A contract where only one party makes a promise or undertakes a performance without requiring a reciprocal agreement from the other party.

Consideration

In contract law, consideration refers to something of value exchanged between parties, forming the basis for a contract.