Solved

Match the Explanations with the Following Terms or Phrases

Question 122

Matching

Match the explanations with the following terms or phrases. Terms or phrases may be used more than once.

Premises:
Current assets/Current liabilities
Remote contingent liability
Current assets – Current liabilities
Cash + Temporary investments + Accounts receivable
(Cash + Temporary investments + Accounts receivable)/Current liabilities
Probable likelihood and estimable liability
Probable likelihood of a liability but cannot be estimated
Reasonably possible likelihood of a liability
Responses:
Current ratio
Working capital
Quick assets
Quick ratio
Record an accrual and disclose in the notes to the financial statements
Disclose only in notes to financial statements
No disclosure needed in notes to financial statements

Correct Answer:

Current assets/Current liabilities
Remote contingent liability
Current assets – Current liabilities
Cash + Temporary investments + Accounts receivable
(Cash + Temporary investments + Accounts receivable)/Current liabilities
Probable likelihood and estimable liability
Probable likelihood of a liability but cannot be estimated
Reasonably possible likelihood of a liability
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