By leasing an asset for less than 75% of its economic life or less than 90% of its fair value, a company can avoid classifying the lease as a capital lease

Valuation of inventories requires the determination of all of the following except

a. the costs to be included in inventory. b. the physical goods to be included in inventory. c. the cost of goods held on consignment from other companies. d. the cost flow assumption to be adopted.

Which of the following describes the environment in internal control?

A) Internal auditors monitor company controls to safeguard assets, and external auditors monitor the controls to ensure that the accounting records are accurate. B) The environment is the "tone at the top" of the business. C) The environment is designed to ensure that the business earns profit. D) A company must identify its risks.