A company's management has uncovered events that indicate that substantial doubt exists that the company can pay its debts as they come due over the following year. What should management do next?
A. Management should disclose that substantial doubt exists that the company can remain in existence.
B. Management should examine the plans created to address the concern.
C. Management should adjust all asset balances to fair value.
D. Management should adjust all liabilities to expected settlement amounts.
Ans: B. Management should examine the plans created to address the concern.
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If a buyer using a perpetual inventory system agrees to freight terms of FOB shipping point, then the
A. buyer will debit the Inventory account for the amount of the freight charges B. buyer will debit Shipping Expense C. transportation company will bear the freight cost D. seller will bear the freight cost
Gibson Valves produces cast bronze valves on an assembly line, currently producing 1600 valves each 8-hour shift. If the productivity is increased by 10%, it would then be:
A) 180 valves/hr. B) 200 valves/hr. C) 220 valves/hr. D) 880 valves/hr. E) 1760 valves/hr.