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

Lets understand the meaning of current ratio. Current ratio compares current asset with the current…

Answered: Other things held constant, which of…

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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To prepare the statement of cash flows using the indirect method: Group of answer choices A)A decrease in inventory is added to net income. B)A purchase of a machine is subtracted from net income. c)Cash paid for dividends is added to net income. d)A decrease in accounts payable is added to net income. e)None of the above
preparing an indirect method statement of cash flows, an increase in ending inventory over beginning inventory will result in an adjustment to reported net earnings because O a. cash was increased while cost of goods sold was decrease O b. cost of goods sold on an accrual basis is lower than on a cash basis. O c. inventory purchased during the period was less than inventory sold resulting in a net cash increase. d. O d. acquisition of inventory is an investment activity.
fill in the blanks for cash and net income and explain why
None
Cash flow from operating activities is increased by: a. depreciation and amortization b. a decrease in accounts receivable c. a decrease in inventory d. an increase in accounts payable e. all of these
Can u avoid image based solution please thanku
please quickly i just need answer thanks! 9 When a gain is realized in an exchange between equipment (Cash is given as a boot), which of the following account should not be recorded? A. Gain on the exchange B. The new equipment C. Cash D. The old equipment
I know in order to find the cash flow from operating activities using the indirect method you start with the net income then add your depreciation expense and your loss on disposal equipment. Then you subtract increases in account receivable and decrease in account receivable and that gives you your net income. However, when I compute this it says all my answers are incorrect. I thought I was doing this correctly but clearly I need assistance.
Help me please
Unearned revenue adjustments are needed when cash is received before ?revenue is earned False True
To determine cash payments for merchandise for the statement of cash flows using the direct method, a decrease in accounts payable is added to the cost of merchandise sold. Group of answer choices True False
Application Directions: On the space provided, write your FIRST NAME if the idea being expressed is CORRECT, and your LAST NAME, if otherwise. 1. When an entity's net working capital is positive, current liabilities exceed current assets. 2. Marketing managers prefer lower inventory quantities since costs are associated with carrying inventories 3. When an entity's net working capital is negative, current liabilities exceed current assets. 4. Entities would prefer to convert inventories to cash the fastest way possible. 5. Working capital management is critical in every organization. 6. At the economic order quantity, carrying costs exceed ordering costs. 7. The higher the firm's current assets, the higher the profitability and the higher the risk. 8. The reorder point is measured as the lead time in order processing multiplied by daily inventory usage. 9. A firm's choice in the level of its working capital reflects its risk preference. 10.A safety stock prevents the occurrence of…

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		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