Question 1

The statement concerning the current working capital)ratio that is incorrect is: e.g.by using cash to pay off short-term debt

Accepted Answer

A) A low current ratio may indicate difficulty in meeting short-term commitments 
B) A current ratio of $1.50 of current assets for each $1 of current liabilities should always be maintained 
C) A high current ratio may indicate excessive investment in working capital 
D) The current ratio can be manipulated at balance date, 
A) A low current ratio may indicate difficulty in meeting short-term commitments 
B) A current ratio of $1.50 of current assets for each $1 of current liabilities should always be maintained 
C) A high current ratio may indicate excessive investment in working capital 
D) The current ratio can be manipulated at balance date,

Question 2

Kaplan has a current ratio of 2.5 to 1 and current liabilities of $12 000.If Kaplan has $9000 of inventory what is the quick ratio?

Accepted Answer

A) 2.25 to 1 
B) 2.00 to 1 
C) 1.75 to 1 
D) 1.50 to 1 
A) 2.25 to 1 
B) 2.00 to 1 
C) 1.75 to 1 
D) 1.50 to 1

Question 3

How many of these ratios measure the adequacy of profits?
.Profit before interest and finance costs/ finance costs
.Profit compared to total assets
.Profit compared to sales
.Profit compared to equity

Accepted Answer

A) 1 
B) 2 
C) 3 
D) 4 
A) 1 
B) 2 
C) 3 
D) 4

The statement concerning the current working capital)ratio that is incorrect is: e.g.by using cash to pay off short-term debt

Kaplan has a current ratio of 2.5 to 1 and current liabilities of $12 000.If Kaplan has $9000 of inventory what is the quick ratio?

How many of these ratios measure the adequacy of profits? .Profit before interest and finance costs/ finance costs .Profit compared to total assets .Profit compared to sales .Profit compared to equity

Decision Making and the Role of Accounting

Financial Statements for Decision Making

Recording Transactions

Adjusting the Accounts and Preparing Financial Statements

Completing the Accounting Cycle

Accounting for Retailing

Accounting for Systems

Accounting for Manufacturing

Cost Accounting Systems

Cash Management and Internal Control

Cost-Volume-Profit Analysis for Decision Making

Budgeting for Planning and Control

Performance Evaluation for Managers

Differential Analysis,profitability Analysis and Capital Budgeting

Partnerships: Formation,operation and Reporting

Companies: Formation and Operations

Regulation and the Conceptual Framework

Receivables

Inventories

Non-Current Assets: Acquisition and Depreciation

Non-Current Assets: Revaluation,disposal and Other Aspects

Liabilities

Presentation of Financial Statements

Liabilities

Filters

Exam 25: Analysis and Interpretation of Financial Statements

The statement concerning the current working capital)ratio that is incorrect is: e.g.by using cash to pay off short-term debt

Kaplan has a current ratio of 2.5 to 1 and current liabilities of $12 000.If Kaplan has $9000 of inventory what is the quick ratio?

How many of these ratios measure the adequacy of profits? .Profit before interest and finance costs/ finance costs .Profit compared to total assets .Profit compared to sales .Profit compared to equity

Decision Making and the Role of Accounting

Financial Statements for Decision Making

Recording Transactions

Adjusting the Accounts and Preparing Financial Statements

Completing the Accounting Cycle

Accounting for Retailing

Accounting for Systems

Accounting for Manufacturing

Cost Accounting Systems

Cash Management and Internal Control

Cost-Volume-Profit Analysis for Decision Making

Budgeting for Planning and Control

Performance Evaluation for Managers

Differential Analysis,profitability Analysis and Capital Budgeting

Partnerships: Formation,operation and Reporting

Companies: Formation and Operations

Regulation and the Conceptual Framework

Receivables

Inventories

Non-Current Assets: Acquisition and Depreciation

Non-Current Assets: Revaluation,disposal and Other Aspects

Liabilities

Presentation of Financial Statements

Liabilities

Filters