Acue Company reported current assets of P3,900,000 and current liabilities of P2,000,000 on its statement of financial position as of December 31, 2017. The following items may have been recorded incorrectly. The company uses the periodic inventory system.Goods purchased costing P220,000 were shipped FOB shipping point by a vendor on December 26. Acue received and recorded the invoice on December 29, 2017, but the goods were not included in Acue’s physical count of inventory because they were not received until January 4, 2018.Goods purchased costing P200,000 were shipped FOB destination by a supplier on December 28. Acue received and recorded the invoice on December 31, but the goods were not included in Acue’s 2017 physical count of inventory because they were not received until January 2, 2018.Goods held on consignment from Si Company were included in Acue’s December 31, 2017, physical count of inventory at P130,000. What is the current ratio based on Acue’s statement of financial position (before corrections are made)?0.51 to 11 to 11.95 to 11.84 to 1

Name: Acue Company reported current assets of P3,900,000 and current liabili
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Description: Acue Company reported current assets of P3,900,000 and current liabilities of P2,000,000 on its statement of financial position as of December 31, 2017. The following items may have been recorded incorrectly. The company uses the periodic inventory s

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Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter9: Current Liabilities And Contingent Obligations

Section: Chapter Questions

Problem 1MC: The balance in Ashwood Companys accounts payable account at December 31, 2019, was 1,200,000 before...

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Acue Company reported current assets of P3,900,000 and current liabilities of P2,000,000 on its statement of financial position as of December 31, 2017. The following items may have been recorded incorrectly. The company uses the periodic inventory system.

Goods purchased costing P220,000 were shipped FOB shipping point by a vendor on December 26. Acue received and recorded the invoice on December 29, 2017, but the goods were not included in Acue’s physical count of inventory because they were not received until January 4, 2018.
Goods purchased costing P200,000 were shipped FOB destination by a supplier on December 28. Acue received and recorded the invoice on December 31, but the goods were not included in Acue’s 2017 physical count of inventory because they were not received until January 2, 2018.
Goods held on consignment from Si Company were included in Acue’s December 31, 2017, physical count of inventory at P130,000.

What is the current ratio based on Acue’s statement of financial position (before corrections are made)?

0.51 to 1

1 to 1

1.95 to 1

1.84 to 1

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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