A current ratio of less than one means current assets are less than current liabilities. Select one: O True O False

Q: Which of the following is NOT one of the ratios in Profitability group? Select one: a. Quick ratio…

A: Profitability ratios are those ratios which helps in measuring and determining the profitability of…

Q: If a company computes its current ratio to be 3.56, what does this mean interms of the company’s…

A: Current ratio is one type of liquidity ratios, it link between current assets and current…

Q: The return on assets ratio is a: Group of answer choices A)Liquidity ratio. b)Solvency ratio.…

A: Return of assets calculates the amount of profit generated on the amount of assets invested.

Q: During a period of inflation, an account balance remains constant. With respect to this account, a…

A: This question is answered as per IAS 29 "Financial Reporting in Hyperinflationary Economies"

Q: 1. Horiontal analysia isaechniue for evaluating aseries of financial statement data over a period of…

A: Financial statements are statements which states the business activities performed by the company .…

Q: Required: a. Compute the current ratio b. Quick ratio d. Asset turnover e. Average collection period…

A: Ratio analysis, the foundation of fundamental analysis, helps to gain a deeper insight into the…

Q: Liabilities are usually listed in order of magnitude, from smallest dollar amount to largest dollar…

A: Liabilities are legal financial debt or obligation arises during the course of business operations…

Q: Assets are increased with debits and decreased with credits. True False

A: The rules of accounting indicate that all assets, expenses, and losses have a nominal debit balance.…

Q: n what way do assets differ from liabilities?

A: Solution: Asset is a resource owned by the business having some economic value with expectation of…

Q: Return on Assets, or ROA, can be expressed as the product of two ratios.  Which two?

A: Return on Assets: It refers to the ratio that measures the profitability of the company with respect…

Q: Which of the following statements is true? a. Accumulated depreciation is always higher than…

A: Introduction:- Depreciation is a non cash expenditure. Depreciation is charged on on fixed assets…

Q: The current ratio is calculated as current liabilities divided by current assets. O a. FALSE O b.…

A: the current ratio is a measure of the companies ability to pay its customers with the cash generated…

Q: 1. What amount should be reported hyperinflationary statement of financial position? as total assets…

A: Statement of financial position is one of the financial statements of a company, prepared at the end…

Q: The Interest earned over a specified period of time is expressed a percentage of the original amount…

A: Rate of return is the total incentive earned on the amount invested expressed in percetage.

Q: Which situation indicates a net loss within the Income Statement section of the worksheet? a. Total…

A: In an income statement , credits refers to income and debits refers to expenses. Net loss occurs…

Q: Net Income is calculated as follows: NI = NII – Burden - PL + SG-T Where, bank burden (non-interest…

A: Formula: NI = NII - Burden - PL - + SG - T NI stands for Net Income.

Q: Give an example of Current Asset, Current liabilities, Non Current Asset, Non Current Liabilities

A: 1. Current Assets : These are the assets which are convertible into cash within a Year   Example: 1.…

Q: True or false. Debit Increases in assets and expenses, decreases in liabilities and revenue?

A: The different accounts in the business have debit and credit balance.  The assets and expenses have…

Q: Accounting for all possible losses and expecting no profit is as per O a. Revenue recognition…

A: Answer : Option (C ) conservatism Principle

Q: calculated the current ratio, acid test ratio, account receivable turnover ratio, net profit margin…

A: Ratio analysis is a method to know the liquidity, profitability and operational efficiency of the…

Q: The current ratio is: Multiple Choice Cash, short-term investments, and accounts receivable divided…

A: Solution: The Current ratio is a ratio which is considered as a liquidity ratio. It represents…

Q: The debt ratio is calculated by dividing total assets by total liabilities Group of answer choices…

A: The correct option with proper explanation are as follows

Q: Indicate the effect that each transaction/event listed here will have on the financial ratio listed…

A: Transaction/Event Explanation a. Purchased inventory on account. Purchases of inventory on…

Q: The debt-to-assets ratio is the: Multiple Choice ratio of current liabilities to current assets.…

A: Debt-to Assets Ratio = Total Debt / Total Assets

Q: Quick assets divided by current liabilities is the: Select one: a.Current ratio. b.Working capital…

A: Quick assets are the highly liquid assets that include all the current assets except inventory and…

Q: The debt ratio is defined as (blaink) divided by (blank)

A: Ratios analysis will be providing information as to what percentage of portion is denoted to which…

Q: The following ratios are indicators of liquidity ,except_______   Group of answer choices current…

A: Liquidity of firm is meausred by ablity to satisfy its short term obligations as they come due.

Q: The ratio quantifies the degree of available liquid assets is O Liquidity coverage ration Temporay…

A: Degree of available liquid assets means how much liquid assets available with the firm

Q: A basic difference between loss contingencies and “real”liabilities is: a. Liabilities stem from…

A: Contingency is a liability that may arise in the future while the real liability has already…

Q: Ratio between current assets and liabilities is called ratio

A: The ratio between current assets and current liabilities is called the current ratio instead of…

Q: The best approach to measuring liquidity takes into account changes over time in both liquidity…

A: Liquidity ratios: They are considered as an important class of metrics in finance which is used to…

Q: Which of the following would not result in an increase in both the current ratio and the acid test…

A: Current ratio is a financial ratio which helps to determine or analyse the liquidity in a company in…

Q: The relationship between two financial variables can be expressed in: *         a) Pure ratio…

A: Ratio analysis help to analyse the financial statements of the company. The management can take…

Q: Current assets LESS current liabilities is the *       a. Current Ratio       b. Net Worth Ratio…

A: Current assets  is asset which can be realised in normal operating cycle of business.

Q: During a period of inflation, an account balance remains constant. With respect to this account, a…

A: Monetary items refers to those assets and liabilities whose value can be measured and expressed in…

Q: hance, a profit is period exceeds the amount of net assets at the beginning of the earned only if…

A: Physical capital maintenance : The physical capital is where capital of an organisation is regarded…

Q: Assets are increased by debits and liabilities are decreased by credits. TRUE FALSE

A: Hey, since there are multiple questions posted, we will answer the first question. If you want any…

Q: The traditional way of preparing a balance sheet is to list all assets in the order of their: A)…

A:

Q: - adjusted total current liabilities

A: Current liabilities are the obligations repayable within a year. It is a part of liabilities' side…

Q: Comment on the following statements with suitable example: i. The ratio return on assets has net…

A: Ratio analysis is a tool used by the financial analyst to measure the financial performance of the…

Q: Debit interest payments are added to revenue but subtracted from outlays. Select one: True False

A: Since you have posted multiple questions, we will do the first one for you. To get the other…

Q: Which of the following formulas is correct when describing the relationship between income (1),…

A: Present Value = (Future cash Flows/Rate)   Hence, Value is computed as discounting the cash flows…

Q: Which of the following is an asset management ratio?     a) Times interest earned   b) Leverage…

A: Asset management ratios are those ratios which are used for analysing the efficiency of assets of…

Q: Indicate the effect of the transactions listed in the following table on total current assets,…

A: A fixed asset is sold for more than book value: If fixed asset is sold, cash will be come into the…