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 is true? a. A credit entry will increase a long-term loan A credit entry will increase accounts payable A credit entry will increase profit b. A debit entry will increase current assets A debit entry will decrease capital A debit entry will increase profit c. A debit entry will increase receivables A credit entry will decrease current liabilities A credit entry will increase profit d. A debit entry will decrease drawings A debit entry will increase accounts receivable A debit entry will decrease accounts payable
If cash is collected at the sale:A.the operating cycle will be longer than if sold on creditB.the account payable will be decreased as a result of the saleC.the operating cycle will be shorter than if sold on creditD.the account receivable will be increased a a result of the sale
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) If Current Ratio is 2:1 state giving reason of the following transactionwould(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 Liquid ratio is 1:1, find whether the following transactionswould (ii) Improve (ii) Reduce or (iii) Not change Liquid Ratio1) Purchase of goods for cash2) Purchase of goods on credit3) Payment of Tax Provision4) Sales of short term investment at par5) Sales of Investment at profit.
LETS START I. Matching type: Directions: Match the terms in Column A with the correct definition in Column B. You may choose more than one a. one answer from Column B. ANSWER Column A Column B 1. Principal A. time money is borrowed 2. Term B. amount paid or earned for the use of money 3. Interest C. percentage of increase of investment 4. Maturity Value D. amount of money borrowed or investment E. amount added by the lender, to be received on repayment date F. amount received on repayment date 5. Interest rate
Which of the following activities does not increase cash? Multiple Choice Increasing current liabilities (getting a 90-day loan). Decreasing current assets other than cash (selling some inventory for cash). Increasing long-term debt (borrowing long-term). Increasing equity (selling some stock). Increasing fixed assets (purchasing property).
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
Multiple choice: 1. If you sell on credit, your cash inflow depends very much on the A. Cash sales B. Agreements or unsecured accounts C. Collection of AR D. Age of receivables 2. Initial investment of the owner A. Fixed capital B. Working capital C. Capital structure D. Equity capital
What is the primary purpose of the Statement of Affairs ? a. To determine how much is owed by the customers b. To determine the amount for the owners equity c. To determine how is left in the bank account d. To determine if there was a gain or loss on disposal The term Margin is determined by which of the following operations? a. Adding all the incomes b. Dividing gross profit by sales c. Subtracting expenses from sales d. Multiplying capital by a decimal The Sandy Bay is a trader in sand. On December 31, 2010 the closing inventory was completely destroyed by flood rains. The following information is available: (1) Inventory at December 1, 2010 at cost $31,400 (2) Purchases for December 2010 $55,600 (3) Sales for December 2010 $88,800 (4) Standard mark-up is 25% Based on this information, what was the value of the closing inventory? a. $15,960 b. $17,760 c. $20,400 d. $25,800…
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QB) Choose the correct answer: 5. Temporary accounts would not include: Select one: a. Depreciation expense. b. Salaries payable. c. Cost of goods sold. d. Supplies expense. 6. Operating cash outflows would include: Select one: a. Purchases of inventory b. Purchase of equipment. c. Purchase of investments. d. Repayment of bank loan.
Which of the following transactions would result in an increase in capital employed? A. Paying a trade payable in cash B. Writing off a bad debt C. Purchasing on credit D. Repaying a loan E. Selling inventory at a profit F. Increasing the bank overdraft to purchase a non - current asset

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