Description : Current liabilities a. are obligations that the company is to pay within the forthcoming year. b. are listed in the balance sheet in order of their expected maturity. c. are listed in the balance sheet, ... . d. should not include long-term debt that is expected to be paid within the next year.
Last Answer : a. are obligations that the company is to pay within the forthcoming year. b. are listed in the balance sheet in order of their expected maturity.
Description : . The first item listed under current liabilities is usually a. accounts payable. b. notes payable. c. salaries payable. d. taxes payable.
Last Answer : b. notes payable.
Description : The most important information needed to determine if companies can pay their current obligations is the a. net income for this year. b. projected net income for next year. c. ... between current assets and current liabilities. d. relationship between short-term and long-term liabilities.
Last Answer : c. relationship between current assets and current liabilities.
Description : Which of the following liabilities are not related to the operating cycle? a. Wages payable b. Accounts payable c. Utilities payable d. Bonds payable
Last Answer : d. Bonds payable
Description : Cash from operations is equal to------------------ a) net profit afer tax b) net profit plus increase in current asset c) net profit plus decrease in current liabilities d) net profit plus non-cash expenses plus decrease in current
Last Answer : d) net profit plus non-cash expenses plus decrease in current
Description : The sub-classifications on the company’s classified balance sheet would include all of the following except: a. Current Assets. b. Property, Plant, and Equipment. c. Current liabilities. d. Long-term Assets.
Last Answer : d. Long-term Assets.
Description : Liabilities are generally classified on a balance sheet as a. small liabilities and large liabilities. b. present liabilities and future liabilities. c. tangible liabilities and intangible liabilities. d. current liabilities and long-term liabilities.
Last Answer : d. current liabilities and long-term liabilities.
Description : Closing entries are made a. in order to terminate the business as an operating entity. b. so that all assets, liabilities, and Stockholders' equity accounts will have zero balances when the ... ) and dividends to the retained earnings account. d. so that financial statements can be prepared.
Last Answer : c. in order to transfer net income (or loss) and dividends to the retained earnings account. unt.
Description : What are total long-term liabilities at December 31, 2008? a. $0 b. $70,000 c. $88,000 d. $90,000
Last Answer : a. $0
Description : Net capital employed is equal to --------------- a) Total assets minus liabilities b) Fixed asset plus net working capital c) Total asset minus long-term liabilities d) Total assets
Last Answer : b) Fixed asset plus net working capital
Description : Under a perpetual inventory system, acquisition of merchandise is debited to the a. Merchandise Inventory account. b. Cost of Goods Sold account. c. Purchases account. d. Accounts Payable account.
Last Answer : a. Merchandise Inventory account.
Description : he journal entry to record a return of merchandise purchased on account under a perpetual inventory system would include a. Accounts Payable Sales Returns and Allowances b. Purchase Returns and ... Accounts Payable c. Accounts Payable Inventory d. Merchandise Inventory Cost of Goods Sold
Last Answer : d. Merchandise Inventory Cost of Goods Sold
Description : A buyer would record a payment within the discount period under a perpetual inventory system by crediting a. Accounts Payable. b. Merchandise Inventory. c. Purchase Discounts. d. Sales Discounts.
Last Answer : b. Merchandise Inventory.
Description : The journal entry to record a return of merchandise purchased on account under a perpetual inventory system would credit a. Accounts Payable. b. Purchase Returns and Allowances. c. Sales. d. Merchandise Inventory.
Last Answer : d. Merchandise Inventory.
Description : The relationship between current assets and current liabilities is important in evaluating a company's a. profitability. b. liquidity. c. market value. d. accounting cycle.
Last Answer : b. liquidity.
Description : Current liabilities are equals to------------------------------- a) Working capital +current assets b) Working capital-current assets c) Current assets-working capital d) Current asset + working capital
Last Answer : c) Current assets-working capital
Description : Current assets are Rs.6,00,000 current liabilities are Rs.3,00,000 the debtors realized Rs.40,000, the impact on net working capital would be------------------------- a) No change in working ... Decrease of working capital by Rs.80,000 c) Increase of working capital by Rs.40,000 d) None of these
Last Answer : a) No change in working capital
Description : Decrease in current liabilities --------------------working capital a) Increases b) Decrease c) Deducts d) Reduces
Last Answer : a) Increases
Description : Increases in current liabilities --------------working capital a) Increase b) Decreases c) Added d) None of these
Last Answer : b) Decreases
Description : Working capital is expressed as------ a) Current asset-fixed asset b) Fixed assets-current liabilities c) Current assets-current liabilities d) None of these
Last Answer : c) Current assets-current liabilities
Description : Current ratio is 4:1, the amount of current liabilities is Rs.12000 the amount of working capital is----- a) Rs.48,000 b) Rs.36000 c) Rs.30000 d) Rs.60000
Last Answer : a) Rs.48,000
Description : The ratio of liquid asset to current liabilities a) Quick ratio b) Current ratio c) Absolute liquid ratio d) Combined ratio
Last Answer : a) Quick ratio
Description : Cash flow is a part of a) Fund flow b) Balance sheet c) Income statement d) Comparative statement
Last Answer : c) Income statement
Description : Fund flow statement are very useful in planning intermediate and ----------- financing. a) Short term b) Long term c) Medium term d) None of these
Last Answer : a) Short term
Description : Excess of current asset over current liability is known as ------------- a) Gross working capital b) Net working capital c) Average working capital d) None of these
Last Answer : a) Gross working capital
Description : An appropriation of profit is --------------------- a) Current asset b) Non current asset c) Provision for taxation d) Non current liability
Last Answer : c) Provision for taxation
Description : Proposed dividend is a-------- a) Current liability b) Current asset c) Noncurrent liability d) Expense
Last Answer : a) Current liability
Description : Which of the following is a non-current liability a) Mortgage loan b) Bank balance c) Outstanding salary d) None of these
Last Answer : a) Mortgage loan
Description : If the current assets and working capital of a company are rs.80,000 and rs.50000 then current liability will be------------- a) Rs.1,00,000 b) Rs.1,30,000 c) Rs.70000 d) Rs.30000
Last Answer : d) Rs.30000
Description : Stock and prepaid expanses are not included in ---------------- a) Current asset b) Fixed asset c) Current liability d) Quick asset
Last Answer : d) Quick asset
Description : The asset, the amount of which can be realized within a period of one year are known as ---------------- a) Current liability b) Current asset c) Liquid liability d) Fixed asset
Last Answer : b) Current asset
Description : he ratio of current asset to currnt liability is known as -------------- a) Liquid ratio b) Current ratio c) Absolute liquid ratio d) Turn over ratio
Last Answer : b) Current ratio
Description : ___________ items are assets and liabilities other than monetary items.
Last Answer : Non-monetary,
Description : Monetary items are defined by AS 11 as assets and liabilities other than non-monetary items.
Last Answer : FALSE
Description : Liability for compensation under Workmen’s Compensation Act is treated a) Secured creditor b) Preferential creditor c) Over – riding preferential creditor d) Unsecured creditor
Last Answer : Over – riding preferential creditor
Description : An essential tool of short term financial analysis a) Fund flow statement b) Statement of uses and application of funds c) Cash flow statement d) Ratio analysis
Last Answer : c) Cash flow statement
Description : Which of the following will affect the flow of fund a) a transaction affecting current and non-current accounts b) a transaction affecting both non-current accounts c) a transaction affecting both current accounts d) both a) and b)
Last Answer : a) a transaction affecting current and non-current accounts
Description : When one account is current and another a non-current It results in-------------------- a) Flow of fund b) Increase of fund c) Decrease of fund d) None of these
Last Answer : a) Flow of fund
Description : Fund flow refers to change in----- a) Working capital b) Fixed capital c) Current capital d) Increase in working capital
Last Answer : c) Current capital
Description : Proprietary ratio measures the relationship between share holder fund and ------------------ a) Total asset b) Fixed asset c) Current asset d) Fictious asset
Last Answer : a) Total asset
Description : In a perpetual inventory system, a return of defective merchandise by a cash customer is recorded by crediting a. Accounts Payable and Cash. b. Merchandise Inventory and Cost of Goods Sold c. Purchases Returns and Allowances and Merchandise Inventory. d. .Cash and Cost of Goods Sold.
Last Answer : d. .Cash and Cost of Goods Sold.
Description : The underwriting commission is payable in cash alone.
Description : 2. The underwriting commission is payable in cash .
Description : The underwriting commission is payable in cash .
Description : When the underwriting commission becomes payable , the underwriter A/c is debited
Description : If the company is insolvent , interest on debentures is payable upto the date of actual payment.
Description : Cash, receivable, and payable are examples of ____________ items.
Last Answer : Monitory,
Description : As per AS-14 purchase consideration is payable to _________________. (A) Shareholders (B) Creditors (C) Debenture holders (D) Bank
Last Answer : Shareholders
Description : Increase in the amount of bills payable results in---------- a) Decrease in cash b) Increase in cash c) No change in cash d) None of these
Last Answer : b) Increase in cash
Description : Debtors turnover ratio also known as---------- a) Payable turnover b) Receivable turnover ratio c) Creators turnover ratio d) Debtors velocity
Last Answer : b) Receivable turnover ratio