Summary
Highlights
An index of short-term paying ability is known as the C current ratio.
The estimated value of an asset at the end of its useful life is referred to as C salvage value.
The actual counting and determination of materials on hand at a given date is called a physical inventory.
The quantity of a commodity offered for sale at a certain price, place, and time is B supply.
Work in process is classified as an asset.
The highest position in a corporation is the C chairman of the board.
A type of business ownership where individuals enjoy rights in their own interest is C private.
An association of two or more individuals operating a business as co-owners for profit is a C partnership.
The capacity of a commodity to satisfy human want is B luxury (Note: This might be a misinterpretation in the video, usually referred to as Utility in economics).
Direct labor costs and direct material costs collectively form the C prime cost.
The amount a willing buyer will pay to a willing seller for a property, under no compulsion, is B market value.
A situation where a commodity or service is supplied by many vendors, with no barriers to entry, is an a perfect competition.
Products or services desired by humans, purchased if money is available after necessities, are C luxuries.
Products or services required to support human life and activities, purchased in similar quantities regardless of price, are B necessities.
A condition where few individuals produce a product, and actions of one lead to similar actions from others, is an a oligopoly.
The grand total of assets and operational capability of a corporation is a authorized capital.
The worth of property, equal to the original cost less depreciation, is d book value.
Money paid for the use of borrowed capital is C interest.
Liquid assets like cash and other assets quickly convertible to cash, such as accounts receivable and merchandise, are called C current assets.
The length of time a property can be operated at a profit is its B economic life.