An internal user is not involved in managing a company. does not have access to internal accounting information. is any employee in the company. includes company officers. Which of the following statements is true? Two recognition principles are the fair value basis of accounting and the going concern assumption Fair value is fair value in use. Fair values may not always be representationally faithful. The fair value basis of accounting states that all assets and liabilities can be reported at fair value. On September 1, Monmouth Kingbird Ltd. signed a 8%, 5-month bank loan payable for $11700. The amount of interest to be accrued at December 31, assuming adjusting entries have not been previously made, is $312. $12636 $936. $390 A company just starting a business purchased three inventory items at the following prices: March 2. $225: March 7.5235; and March 15, $255. If the company sold one unit for $305 on March 10 and one unit for $325 on March 20 and uses the average cost formula in a perpetual inventory system, what is the cost of ending inventory? $238.33 $255.00 $325.00 $242.50 In calculating depreciation, residual value is ignored in all the depreciation methods. the fair value of the asset on the date of acquisition subtracted from accumulated depreciation to determine the asset's depreciable cost. an estimate of the asset's value at the end of its useful life. A bond with a face value of $96000 and a quoted price of 103.00 would have a selling price of $288000 $98880. $93204 $96000 Accounts receivable $2400 Cost of goods sold 186900 Net income 49900 Sales 445000 Total assets 254000 Total current assets 25200 In performing a vertical analysis, the percentage for cost of goods sold is 5.7%. 19.6% 42.0%. 199.1%. On June 1, 2022. Coronado Corp purchased Nash's Trading Corp.common shares for $12060 as a trading investment. Three months later, Coronado sold these shares for $13060. The entry to record the sale would include a M O M debit to Cash of $12060 credit to Realized Gain on Trading Investments of $1000, credit to Trading Investments of $13060, credit to Interest Income of $1000, M When shares are traded on the secondary market it means that investors can purchase and sell shares from each other using a stock exchange. that the public can purchase shares directly from the company. it's the first time a corporation's shares are offered for sale to the public. that this is the same thing as an initial public offering. a Asset turnover ratio is calculated as sales divided by net income. average total assets divided by sales. average total assets divided by net income. O sales divided by average total assets