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.

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.
by

1 Answer

Answer :

b. liquidity.
by

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Last Answer : Non-monetary,

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What A financial statement that lists a company's assets liabilities and owner's equity as of a specific date is called?

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Kirti Co’s Balance Sheet shows Fixed Asset Rs. 3,60,000. At the time of absorption calculation of Net Assets is 10% less than the market value, then market value of such fixed assets is ............ (A) Rs. 3,24,000 (B) Rs. 4,00,000 (C) Rs. 4,20,000 (D) None of these

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Current ratio is an example of -------------------- a) Leverage ratio b) Liquidity ratio c) Activity ratio d) Turnover ratio

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Zach’s Market recorded the following events involving a recent purchase of merchandise: Received goods for $50,000, terms 2/10, n/30. Returned $1,000 of the shipment for credit. Paid $250 freight on the shipment. Paid the invoice within the discount period. As a result of these events, the company’s merchandise inventory a. increased by $48,020. b. increased by $49,250. c. increased by $48,265. d. increased by $48,270.

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The fundamental accounting equation' Assets = Liabilities + Capital' is the formal expression of A. Dual aspect concept B. Matching concept C. Going concern concept D. Money measurement concept

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Last Answer : A. Dual aspect concept

Which of the following accounting equation is correct? A. Capital + Liabilities= Assets B. Capital = Assets + Liabilities C. Capital- Liabilities = Assets D. Capital + Assets = Liabilities

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Last Answer : A. Capital + Liabilities= Assets

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Last Answer : D. 1, 2 and 3

Which of the following methods are used in creative accounting? (a) Off balance sheet financing (b) Abuses of accounting concepts and conventions (c) Manipulating assets and liabilities (d) Over and under valuation of inventories

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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.

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Last Answer : d. current liabilities and long-term liabilities.

. The first item listed under current liabilities is usually a. accounts payable. b. notes payable. c. salaries payable. d. taxes payable.

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Last Answer : b. notes payable.

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

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Last Answer : d) net profit plus non-cash expenses plus decrease in current

Decrease in current liabilities --------------------working capital a) Increases b) Decrease c) Deducts d) Reduces

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Last Answer : a) Increases

Increases in current liabilities --------------working capital a) Increase b) Decreases c) Added d) None of these

Description : Increases in current liabilities --------------working capital a) Increase b) Decreases c) Added d) None of these

Last Answer : b) Decreases