3. A company is considered as a legal entity. The followings are characteristics of a legal entity EXCEPT for:

1. An entity which is separate from owners
2. It can sue or to be sued, acquire, own, hold, develop or dispose of property and enter into transactions
3. Companies are required to account and report based on acquisition costs rather than fair market value for most assets and liabilities
4. It is necessary to record the business's transactions separately, to distinguish them from the owners' personal transactions

4. The followings are the contents of a Meri Cekap Berhad annual report EXCEPT for:

1. Auditors Engagement Letter
2. Chairman's report
3. CEO's report
4. Profile of Board of Directors

18. Refer to the above. The following statements are true EXCEPT for:

1. The sales of Tok Trading is increasing much faster than that of Sin Trading
2. The financial condition of Sin Trading is much stronger than Tok Trading
3. Tok Trading has more ability to repay its current liabilities when they become due
4. The gross profit margin of Tok Trading is 10 cents more than that of Sin Trading to cover the operating and non-operating expenses for a particular accounting period

19. Companies that consistently earn rates of return above the competitive floor in the industry are considered to possess a:
    1. dominant market share
    2. niche market
    3. competitive advantage
    4. monopolistic advantage

20. A measure useful in evaluating efficiency in the management of inventories is the:

1. quick ratio
2. ratio of fixed assets to long-term liabilities
3. working capital ratio
4. number of days sales in inventory