Question 1

Liquidity is the ability

Accepted Answer

A) To increase net assets through regular operations 
B) To generate cash from sources other than regular operations 
C) To convert existing assets into cash 
D) Of financial statement users to predict a company's cash flows 
A) To increase net assets through regular operations 
B) To generate cash from sources other than regular operations 
C) To convert existing assets into cash 
D) Of financial statement users to predict a company's cash flows

Question 2

Assuming that the ideal measure of short-term receivables in the balance sheet is the discounted value of the cash to be received in the future,failure to follow this practice usually does not make the balance sheet misleading because

Accepted Answer

A) Most short-term receivables are not interest bearing 
B) The allowance for uncollectible accounts includes a discount element 
C) The amount of the discount is not material 
D) Most receivables can be sold to a bank or factor 
A) Most short-term receivables are not interest bearing 
B) The allowance for uncollectible accounts includes a discount element 
C) The amount of the discount is not material 
D) Most receivables can be sold to a bank or factor

Question 3

The total amount of working capital is

Accepted Answer

A) $155,000. 
B) $145,000. 
C) $60,000. 
D) $150,000. 
A) $155,000. 
B) $145,000. 
C) $60,000. 
D) $150,000.

Question 4

Under what circumstances should a company with high rate of return on sales consider the inventory sold?

Accepted Answer

A) When the retailer gives a confirmation that the goods won't be returned 
B) When the goods are sold on installment 
C) When it can reasonably estimate the amount of returns 
D) When the payment for goods is received 
A) When the retailer gives a confirmation that the goods won't be returned 
B) When the goods are sold on installment 
C) When it can reasonably estimate the amount of returns 
D) When the payment for goods is received

Question 5

Liquidity ratios measures the

Accepted Answer

A) Operating success of a company over a period of time 
B) The ability of a company to survive over a long period of time 
C) The short-term ability of a company to pay its maturing obligations and to meet unexpected needs for cash 
D) The number of times interest is earned 
A) Operating success of a company over a period of time 
B) The ability of a company to survive over a long period of time 
C) The short-term ability of a company to pay its maturing obligations and to meet unexpected needs for cash 
D) The number of times interest is earned

Question 6

During the year Snedicker reported net sales of $1,920,000.The company had accounts receivable of $150.000,000 at the beginning of the year and $240,000 at the end of the year Compute Snedicker's average collection period assume 365 days a year. )

Accepted Answer

A) 28.5 days 
B) 45.7 days. 
C) 37.1days. 
D) 74.2 days. 
A) 28.5 days 
B) 45.7 days. 
C) 37.1days. 
D) 74.2 days.

Question 7

The Villas Corporation's annual sales all on credit)totaled $540,000 in 2016.The company's accounts receivable turnover ratio was 5.Villas' average accounts receivable collection period and year end accounts receivable balance respectively were:

Accepted Answer

A) 365 days and $108,000. 
B) 73 days and $120,000 
C) 73 days and $108,000 
D) 81 days and $108,000 
A) 365 days and $108,000. 
B) 73 days and $120,000 
C) 73 days and $108,000 
D) 81 days and $108,000

Question 8

When inventory declines in value below original historical)cost,and this decline is considered other than temporary,what is the maximum amount that the inventory can be valued at?

Accepted Answer

A) Sales price net of conversion costs 
B) Net realizable value 
C) Historical cost 
D) Net realizable value reduced by a normal profit margin 
A) Sales price net of conversion costs 
B) Net realizable value 
C) Historical cost 
D) Net realizable value reduced by a normal profit margin

Liquidity is the ability

Assuming that the ideal measure of short-term receivables in the balance sheet is the discounted value of the cash to be received in the future,failure to follow this practice usually does not make the balance sheet misleading because

The total amount of working capital is

Under what circumstances should a company with high rate of return on sales consider the inventory sold?

Liquidity ratios measures the

During the year Snedicker reported net sales of $1,920,000.The company had accounts receivable of $150.000,000 at the beginning of the year and $240,000 at the end of the year Compute Snedicker's average collection period assume 365 days a year. )

The Villas Corporation's annual sales all on credit)totaled $540,000 in 2016.The company's accounts receivable turnover ratio was 5.Villas' average accounts receivable collection period and year end accounts receivable balance respectively were:

When inventory declines in value below original historical)cost,and this decline is considered other than temporary,what is the maximum amount that the inventory can be valued at?

The Development of Accounting Theory

The Pursuit of the Conceptual Framework

International Accounting

Research Methodology and Theories on the Uses of Accounting Information

Income Concepts, Revenue Recognition and Matching

Financial Statement I: the Income Statement

Financial Statements Ii: the Balance Sheet and the Statement of Cash Flows

Long-Term Assets I: Property, Plant, and Equipment

Long-Term Assets Ii: Investments and Intangibles

Long-Term Liabilities

Accounting for Income Taxes

Leases

Pensions and Other Postretirement Benefits

Equity

Accounting for Multiple Entities

Financial Reporting Disclosure Requirements and Ethical Responsibilities

Filters

Exam 8: Working Capital

Liquidity is the ability

Assuming that the ideal measure of short-term receivables in the balance sheet is the discounted value of the cash to be received in the future,failure to follow this practice usually does not make the balance sheet misleading because

The total amount of working capital is

Under what circumstances should a company with high rate of return on sales consider the inventory sold?

Liquidity ratios measures the

During the year Snedicker reported net sales of $1,920,000.The company had accounts receivable of $150.000,000 at the beginning of the year and $240,000 at the end of the year Compute Snedicker's average collection period assume 365 days a year. )

The Villas Corporation's annual sales all on credit)totaled $540,000 in 2016.The company's accounts receivable turnover ratio was 5.Villas' average accounts receivable collection period and year end accounts receivable balance respectively were:

When inventory declines in value below original historical)cost,and this decline is considered other than temporary,what is the maximum amount that the inventory can be valued at?

The Development of Accounting Theory

The Pursuit of the Conceptual Framework

International Accounting

Research Methodology and Theories on the Uses of Accounting Information

Income Concepts, Revenue Recognition and Matching

Financial Statement I: the Income Statement

Financial Statements Ii: the Balance Sheet and the Statement of Cash Flows

Long-Term Assets I: Property, Plant, and Equipment

Long-Term Assets Ii: Investments and Intangibles

Long-Term Liabilities

Accounting for Income Taxes

Leases

Pensions and Other Postretirement Benefits

Equity

Accounting for Multiple Entities

Financial Reporting Disclosure Requirements and Ethical Responsibilities

Filters