Notes accompany financial statements to satisfy the principle of a. Conservatism b. Full Disclosure c. Matching d. Revenue Recognition 61. Adjusting entries are a The same as correcting entries b. Needed to bring accounts up to date and match revenue and expense c. Optional under generally accepted accounting principles d. Rarely needed in large companies 62 Working capital is defined as Current assets minus current liabilities 6. Current assets plus current liabilities c. Current assets times current liabilities d. Current assets divided by current liabilities Internal controls are not designed to protect assets from a. Employee pilferage b. Theft c. Natural Disasters d. Unauthorized use 64. A short-term lender is primarily interested in a company's a Sales b. Liquidity c. Efficiency d. Industry 65. Having the same person be responsible for ordering, receiving and paying for merchandise a. Is an example of segregation of duties b. Increases the chance for errors or loss c. Decreases the chance for errors or loss d. Is all right if the person is a trusted employee 66. Original Cost of an asset was $150,000. Accumulated Depreciation is $75,000. Salvage Value is $25,000. Book Value equals a $50,000 b. $125,000 c. $75,000 d. $100,000 67. The sale of equipment that cost $15,000, with accumulated depreciation of $6,000, for a sale price of $10,000, would result in a a. loss of $3,000. b. loss of $1,000. c. gain of $1,000 d. gain of $3,000. 68. Machinery that was purchased for $60,000 has an estimated salvage value of $15,000. Its depreciable base (depreciable cost) is a. $45,000 b. $60,000 c. $75,000 d. $15,000