Four measures for assessing short-term liquidity risk are (1) Current ratio, (2) Quick ratio, (3) Cash flow from operations to current liabilities ratio, and (4) Working capital turnover ratios

Toby and Shannon grew their two-person publishing company into a 40-employee business

At first, Toby kept tabs on the business side of things, while Shannon headed up day-to-day operations. As the company took on more workers, the owners divided the company into editorial, design, production, sales, and business departments and promoted an employee in each department to manage it. What was the purpose of the departmentalization? What will be an ideal response?

An item would be considered material and therefore would be disclosed in the financial statements if the

a. expected benefits of disclosure exceed the additional costs. b. impact on earnings is greater than 3 percent. c. FASB definition of materiality is met. d. omission of misstatement of the amount would make a difference to the users.