FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Question
(a) If
would
(i) Improve (ii) Reduce or (iii) Not change Current Ratio
(1) Bills Receivable drawn
(2) Bills Receivable Dishonoured
(3) Bills Receivable endorsed to Creditors
(4) Sales of Goods for cash at par
(5) Sales of Goods for cash at Profit
(6) Sales of Assets for Cash
(7) Bills Payable given to creditors
(b) If the
would
(ii) Improve (ii) Reduce or (iii) Not change Liquid Ratio
1) Purchase of goods for cash
2) Purchase of goods on credit
3) Payment of Tax Provision
4) Sales of short term investment at par
5) Sales of Investment at profit.
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- Which of the following is not disclosed in the financial statements? A. Trade discount received B. Cash discount received C. Cash discount allowed D. Sales returnarrow_forward41. Realization of revenue occurs when a. the item is formally recorded and reported in the financial statements b. noncash resources are converted into cash or rights to cash c. the actual exchange of noncash resources into cash С. d. when a transaction is both realized and realizable 42.A revenue recognition method that recognizes revenue before the time of sale is a. percentage-of-completion b. installment c. cost recovery d. point of sale С.arrow_forwardWhich of the following entries is not one a firm would normally make? A)Debit cash, credit accounts receivable B)Debit cash, credit revenue C)Debit cash, credit salaries payable D)Debit cash, credit loans payablearrow_forward
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