ACTIVITY 1. MULTIPLE CHOICEwblupi moit boog aamoz a adTDirections: Encircle the letter of the correct answer.1. MCL Company has a total quick asset of P100,000.00 and quick ratio of 10. Howmuch is the current liabilities of the entity?a. P1,000,000.00b. P1,100,000.00c. P900,000.00d. P10,000.002. If the company's net sales is P250,000.00 and the average accounts receivable isP50,000.00, what is the A/R turnover ratio?c. P200,000.00 md. P300,000.00a. 5To Coubrcbns 00.000,0003. From a current ratio of 4 in 2018, the current ratio of the company is 5 in 2019.b. 1/5a. This is something good from a liquidity standpoint.b. This is something bad from a liquidity standpointc. This data has no implication on the liquidity status of the company.d. All of the above. 4. If average inventory is P40,000.00 and the inventory turnover ratio is 20, how much isthe cost of goods sold by the company?a. .0005c. P40,020.00b. P2,000.00d. P800,000.00 i5. From a working capital of P550,000.00 in 2019, the working capital of the companywent up to P 600,000.00 in 2020.a. This is something good from a liquidity standpoint.b. This something bad from a liquidity standpoint.c. This data has no implication on the liquidity status of the company.d. All of the above.6. Leo's Tailoring performed a net income after tax amounting to P 2,000,000, startingbalance of assets is P250,000.00 and ending balance assets is P350,000.00. Compute0 for the return on assets.ini bes 2oirer I6.6667a. 8с.at aiavlanonomnt d. 3.3333 ibong o boz7. From 60 days in 2018, the number of days in the operating cycle went up to 65 days.nant ori n bo g20olev ie bngb. 5.71Interpret it.This is something good from a liquidity standpoint.This is something bad from a liquidity standpoint.This data has no implication on the liquidity status of the company.This is something good from a profitability standpoint.a.b.bae s c.8. How do you interpret the financial ratio of the company, when the time interest earnedo ratio for 2018 is 10 and it went up to 12 during 2019.To a.This is something good from solvency standpoint.This is something bad from a solvency standpoint.This data has no implication on the solvency status of the company.This is something good from liquidity standpoint.b.с.ISITU TIVITDAd.9. How do you find the liquidity of the company when their current asset is higher thantheir current liabilities? 0.000.001110The company is capable of paying its current obligation.The company is not capable of paying its current obligationThe company is at risk.ouroa.b.0.000.0с.d.Cannot be determined.02910. Compute the gross profit ratio if the company has for the years' net sales ofP900,000.00 and the cost of goods sold is P400,000.00.a. .444b. 2.25doo oninio gbataIniogboak iblupitc. 1.8 Toil bd. 5555allamids odlo RA

The questions are multiple choice questions. Required Choose the Correct Option.

ACTIVITY 1. MULTIPLE CHOICE Directions: Encircle the letter of the correct answer. 1. MCL Company has a total quick asset of P100,000.00 and quick ratio of 10. How much is the current liabilities of the entity? a. P1,000,000.00 b. P1,100,000.00 c. P900,000.00 d. P10,000.00 2. If the company's net sales is P250,000.00 and the average accounts receivable is P50,000.00, what is the A/R turnover ratio? c. P200,000.00 m d. P300,000.00 TO Coubne bo0o'000 a. 5 b. 1/5 3. From a current ratio of 4 in 2018, the current ratio of the company is 5 in 2019. a. This is something good from a liquidity standpoint. b. This is something bad from a liquidity standpoint c. This data has no implication on the liquidity status of the company. d. All of the above.

ACTIVITY 1. MULTIPLE CHOICE Directions: Encircle the letter of the correct answer. 1. MCL Company has a total quick asset of P100,000.00 and quick ratio of 10. How much is the current liabilities of the entity? a. P1,000,000.00 b. P1,100,000.00 c. P900,000.00 d. P10,000.00 2. If the company's net sales is P250,000.00 and the average accounts receivable is P50,000.00, what is the A/R turnover ratio? c. P200,000.00 m d. P300,000.00 TO Coubne bo0o'000 a. 5 b. 1/5 3. From a current ratio of 4 in 2018, the current ratio of the company is 5 in 2019. a. This is something good from a liquidity standpoint. b. This is something bad from a liquidity standpoint c. This data has no implication on the liquidity status of the company. d. All of the above.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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