Answered: The quick ratio (acid test) excludes…

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter24: Analysis Of Financial Statements

Section: Chapter Questions

Problem 2MC

See similar textbooks

Similar questions

Current Asset
Which of the following is included in the calculation of the quick (acid-test) ratio?a. Inventory and short-term investmentsb. Inventory and prepaid expensesc. Cash and accounts receivabled. Prepaid expenses and cash
What is removed from current assets in order to calculate the Quick Ratio? marketable securities cash trade receivables Oiventory
Which of the following would not form part of quick assets? (A)Receivables (В) Cash (C) Prepaid Expense (D) Marketable Securities
The balance sheet account that is usually reported at its fair market value is: a. Short-term marketable securities b. Accounts receivable c. Current liabilities d. Inventory
Expressing accounts receivable as a percentage of total assets is an example ofa. ratio analysis.b. vertical analysis.c. horizontal analysis.d. trend analysis.
Which of the following ratios is most useful in evaluating solvency? a. Receivables turnover ratio. b. Inventory turnover ratio. c. Debt to equity ratio. d. Current ratio.
Dividing quick assets by current liabilities is the calculation for the a.ratio of liabilities to stockholders' equity. b.acid-test ratio. c.current ratio. d.return on investment.
The debt ratio is calculated by dividing total assets by total liabilities Group of answer choices True False
Indicate the effect of the transactions listed in the following table on total current assets, current ration, and net income. Use (+) to indicate an increase, (-) to indicate a decrease, and (0) to indicate either no effect or an indeterminate effect. Be prepared to state any necessary assumptions and assume an initial current ratio of more than 1.0. Marketable securities are sold below cost.
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
True or False: The classified balance sheet will reflect accounts receivables at net realizable value; fixed assets at net book value; and short term investments (trading securities/common stock) at their fair value/market value. O True O False

SEE MORE QUESTIONS

Recommended textbooks for you

College Accounting, Chapters 1-27

Accounting

ISBN:

9781337794756

Author:

HEINTZ, James A.

Publisher:

Cengage Learning,

Cornerstones of Financial Accounting

Accounting

ISBN:

9781337690881

Author:

Jay Rich, Jeff Jones

Publisher:

Cengage Learning

Financial Accounting Intro Concepts Meth/Uses

Finance

ISBN:

9781285595047

Author:

Weil

Publisher:

Cengage

College Accounting, Chapters 1-27

Accounting

ISBN:

9781337794756

Author:

HEINTZ, James A.

Publisher:

Cengage Learning,

Cornerstones of Financial Accounting

Accounting

ISBN:

9781337690881

Author:

Jay Rich, Jeff Jones

Publisher:

Cengage Learning

Financial Accounting Intro Concepts Meth/Uses

Finance

ISBN:

9781285595047

Author:

Weil

Publisher:

Cengage

Principles of Accounting Volume 1

Accounting

ISBN:

9781947172685

Author:

OpenStax

Publisher:

OpenStax College

College Accounting (Book Only): A Career Approach

Accounting

ISBN:

9781337280570

Author:

Scott, Cathy J.

Publisher:

South-Western College Pub

Intermediate Accounting: Reporting And Analysis

Accounting

ISBN:

9781337788281

Author:

James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:

Cengage Learning

SEE MORE TEXTBOOKS

The quick ratio (acid test) excludes which current asset? (a) Cash (b) Accounts receivable (c) Inventory (d) Marketable securities