The primary focus of working capital management is ensuring liquidity and operational efficiency.

The primary goal of managing working capital is ensuring liquidity and operational efficiency.

A cost sheet summarizes the costs incurred in the production of goods, helping in pricing and profitability analysis.

A journal entry is used to record financial transactions in the accounting system.

A journal entry is used to record financial transactions in the accounting system.

A trial balance is prepared to ensure that the total debits equal the total credits in the ledger accounts, confirming the accuracy of the bookkeeping.

Accounting standards are designed to ensure consistency and comparability in financial reporting.

Adjusting entries are made to ensure that revenues and expenses are recognized in the period they occur, following the accrual basis of accounting.

The primary purpose of an audit is to provide assurance that the financial statements are free from material misstatement.

The primary purpose of calculating depreciation is to reduce taxable income by recognizing the expense associated with asset usage.

The current ratio measures a company's ability to pay short-term obligations, thus evaluating liquidity.

Capital budgeting is primarily used to evaluate the profitability and feasibility of long-term investments or projects.

The primary purpose of depreciation is to reflect the consumption of an asset over time, matching the expense with the revenue generated by the asset.

The primary purpose of depreciation is to allocate the cost of tangible assets over their useful lives, reflecting their wear and tear.

Depreciation allocates the cost of a tangible asset over its useful life, reflecting its usage and wear over time.

The primary purpose of financial statement analysis is to assess the financial health and performance of a business, helping stakeholders make informed decisions.

Inventory valuation is primarily used to determine the cost of goods sold.

Journal entries are used to record financial transactions in the accounting system.

The primary purpose of preparing final accounts is to determine the net profit or loss of the partnership for the accounting period.

The primary purpose of preparing a statement of cash flows is to show liquidity.

The primary purpose of preparing a trial balance is to ensure that total debits equal total credits, indicating that the books are in balance.

The primary purpose of preparing final accounts is to assess the financial position of the business.

The primary purpose of preparing final accounts is to assess the financial performance of the business over a specific period.

Final accounts summarize the financial performance and position of a business over a specific period.

The trial balance is prepared to ensure that total debits equal total credits, indicating that the books are in balance.

The straight-line method allocates the cost of an asset evenly over its useful life, making it simple and widely used.

The primary purpose of working capital management is to ensure a company can meet its short-term obligations.

Companies often choose FIFO over LIFO for compliance with IFRS, as LIFO is not permitted under these standards.

The trial balance is prepared to ensure that total debits equal total credits before preparing final accounts.

The primary purpose of a trial balance is to ensure that total debits equal total credits.