Which of the following would not result in an increase in both the current ratio and the acid test ratio? O Increase in inventory O Increase in accounts receivable O norease in current investments O increase in cash
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- Which of the following is not a way to manage earnings? A. Change the method for bad debt estimation. B. Change the figure for the uncollectible percentage. C. Under the balance sheet aging method, change the past-due categories. D. Change the dates of common stock issuance.Analyzing Changes in Balance Sheet Accounts Refer to the information for Peterson Inc. above. Required: Indicate whether each of the changes above produces a cash increase, a cash decrease, or is a noncash activity.Which of the following would not result in an increase in both the current ratio and the acid-test ratio? A. Increase in inventory B. Increase in accounts receivable C. Increase in cash D. Increase in current investments
- Which of the following events will cause a company’s current ratio to decrease? a. The sale of inventory for credit (accounts receivable) b. Issuing stock for cash c. The sale of inventory for cash d. Paying off long-term debt with cashWhich of the following increases the cash conversion cycle? A.A decrease in inventory turnover B.An increase in the cash discount C.An increase in accounts payable D.A decrease in inventory levelWhich one of the following is a source of cash? A. decrease in accounts receivableB. decrease in accounts payable C. decrease in common stockD. increase in inventory
- Which of the following is a cash inflow? a. an increase in dividend payment b. a decrease in accrued liabilities c. a decrease in accounts receivable d. a decrease in accounts payableWhich of the following statements are false? Select all that apply a. Liquidity ratios are used to measure the speed with which various accounts are converted into sales. b. When ratios of different years are being compared, inflation should be taken into consideration c. Return on total assets (ROA) is sometimes called return on investment d. Generally, inventory is concerned with the most liquid asset that a firm possesses. e. A P/E ratio of 20 indicates that investors are willing to pay $20 for each $1 of earnings.1 When examining the current ratio and looking at the company's liquidity, which of the following ratios would NOT assist with evaluating liquidity? A) inventory turnover B) receivables turnover C) quick ratio D) profit margin
- Which one of the following will decrease the length of the cash cycle O a. Increase in inventory period O b. Increase in accounts receivable period C .Increase in accounts payable period d. Decrease in accounts payable periodmore than one answers is correct ( )Which of the following should NOT be added to net income in calculating net cash flow from operating activities using the indirect method? A an increase in inventory B a decrease in accounts payable C a decrease in accounts receivable D preferred dividends declared and paidThese are the selected anaswer provide to select accordingly towards the cash statement: decrease in accounts payable, decrease in accounts receivable, decrease in inventory, decrease in prepaid insurance, decrease in salaries payable, depreciation expense, gain on sale of available for sale debt securities, gain on sale of equipment, increase in accounts payable, increase in account receivable, increase in inventory, increase in prepaid insurance, increase in salaries payable, loss of sale of available for slae securities, loss of sale of equipment, payment of cash dividends, payment of notes payable, purchase of equipment, sale of available for sale debt securities, sale of bonds payable, sale of equipment/ With these selection please out them into their designed areas to changes in oprerating assests and liabilities, cash flows from investing activities, cash flow from financing activities.
