Answer in all options with explanation.Don't use Ai and chatgpt. 4. International Appliances has a current ratio of 1.2. Which of the following actions would improve (increase) thisratio?a. Use cash to pay off current liabilities.b. Collect some of the current accounts receivable.c. Use cash to pay off some long-term debt.d. Purchase additional inventory on credit (accounts payable).e. Use cash to pay for some fixed assets.

a. Using cash to pay off its current liabilities can increase current ratio since the decreasing…

Answered: 4. International Appliances has a…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 20MCQ

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Which of the following transactions would cause the current ratio to increase (assumingthe current ratio is currently greater than 1)?a. Purchased inventory on credit.b. Purchased property, plant, and equipment for cash.c. Received money from a customer related to an accounts receivable.d. Paid off a payable.
a. Modern Medical Devices has a current ratio of 0.5. Which of thefollowing actions would improve (i.e., increase) this ratio?• Use cash to pay off current liabilities.• Collect some of the current accounts receivable.• Use cash to pay off some long-term debt.• Purchase additional inventory on credit (i.e., accounts payable).• Sell some of the existing inventory at cost.
When cash is paid for rent, Rent Expense is ____. a. increased by a debit b. decreased by a debit c. increased by a credit d. decreased by a creditAnswer the question and explain why did you pick this answer
I need help figuring: G. operating profit margin H. Long-term debt ratio (use end of year balance sheet figure) I. Total debt ratio (use end of your balance sheet figures) J. Times interest earn K. Cash coverage ratio L. Current ratio (use end of your balance sheet figures) M. Quick ratio (use end of your balance sheet figures)
Which of the following would result when a company lends cash to a customer in exchange for a ten month note receivable? a. a noncurrent asset and an investing cash flow are created. b. a noncurrent asset and a financing cash flow are created. c. a current asset and a financing cash flow are created. d. a current asset and an investing cash flow are created.
Rr.22. Which of the following is an example of a "quick asset" for purposes of applying the acid-test or quick ratio? (Check all that apply) a. inventory b. cash c. land d. prepaid rent e. current investments f. accounts receivable
A. Accounts Receivable (esion slauluM) B. Accounts Payable D. Owner's Investment gbome A credit to accounts payable is balanced with a debit to what account 5. A. Wages Payable B. Fees Earned C. Cost of Goods Sold yeldevg D. Cash ibe1o A A debit to supnli a credit to what account, varr De valanceu eeneqa aepeW A. Fees Unearned B. Accounts Receivable buntmueed C. Accounts Pavable 69 einuoooA horw Cash 7. a A debit to cash can be balanced by a credit to what account.s dashebit A. Utilities Expense B. Owner's Withdrawals uneve C. Unearned Revenue Dividaldeyabnebivi D. Accumulated Depreciation ocount 70
All of the following are monetary items, except: a. Accounts payable b. Accounts receivable c. Administration costs paid in cash d. Loan repayment at face value
Other things held constant, which of the following will DECREASE the current ratio, assuming an initial current ratio greater than 1.0? a. Machinery is purchased using cash b. Inventory is sold at cost for cash c. Accounts payables are paid with cash d. Machinery is purchased using cash & Accounts payables are paid with cash e. None of these
During the current year, Giatras Electronics recorded credit sales of $710,000. Based on prior experience, it estimates a 4.5 percent bad debt rate on credit sales. Required: 1. Prepare journal entries for each of the following transactions. a. On October 28 of the current year, an account receivable for $2,800 from a prior year was determined to be uncollectible and was written off. b. At year-end, the appropriate bad debt expense adjustment was recorded for the current year. 2. Complete the following table, indicating the amount and effect for each transaction. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare journal entries for each of the following transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) a. On October 28 of the current year, an account receivable for $2,800 from a prior year was determined to be uncollectible and was written off. b. At year-end,…
1. 00 8. 4) What is the impact of establishing the allowance to the horizontal equation? (in each box, put a - for decrease, a + for increase, or NA if no change) Liabilities Stockholders' Equity Revenues Expenses Net Cash Assets Income Flow 5) When a specific account is deemed uncollectible and should be written off, what is the impact to the horizontal equation? (in each box, put a - for decrease, a + for increase, or NA if no change) Stockholders' Equity Revenues Expenses Net Cash Assets Liabilities Income Flow Study guide - Chapter 5 (with solutions).docx O Foc 70°F P. f12 prt sc f5 -> 6. 6. 5. } {
6) ratios compare current assets to current liabilities to indicate the speed with which a company can turn its assets into cash to meet debts as they fall due. A) Debt B) Current C) Liquidity D) Asset utilization E) Profitability

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