Question 23

Every car that Volkswagen sells has four wheels. The relation between the number of wheels that Volkswagen must buy and the number of cars it sells is an example of the concept of:

	A.	Interchangeability
	B.	Capacity
	C.	Responsiveness
	D.	Interdependence

Question 24

One problem that the FASB has noted with overly conservative accounting is that:

A.Under-reporting of income in one period often leads to over-reporting income in future periods.

B.Bankers and creditors tend to be unhappy with conservative balance sheets.

C.This accounting generally forces companies to pay unduly high taxes.

D.This accounting tends to make income too volatile.