81) When considering making a loan to a company, a bank will look for:
A) a high debt ratio and a low current ratio
B) a high debt ratio and a high current ratio
C) a low debt ratio and a low current ratio
D) a low debt ratio and a high current ratio
82) People using the cash basis of accounting for their business generally make better decisions.
83) In accrual accounting, revenue may be earned prior to or after cash is received.
84) The time-period concept requires that accounting information should be reported at regular intervals, which may be monthly, quarterly, or yearly.
85) Corporations typically use the cash basis for their transactions.
86) The cash basis of accounting records the impact of all business transactions as they occur.
87) Accrual accounting is more complex than the cash basis.
88) Using accrual accounting, expenses are not recorded until the cash for the expense is disbursed.
89) Accrual accounting provides some ethical challenges that cash accounting avoids.
90) Under the revenue principle, businesses should record revenue when it is earned regardless of when payment is received from the customer.