Quiz – Current Ratio
Intermediate Accounting
Spiceland, Nelson, and Thomas
10th Edition
The current ratio is calculated as how:
The current ratio is calculated as how:
Find the debt to equity ratio.
Your numbers will vary.
Given financial statement data, they ask you to determine the company’s long-term debt-to-equity ratio equity.
Your numbers will vary.
Given a balance sheet and additional information they ask you to prepare a completed and corrected balance sheet.
Your numbers will vary.
Given account balances from the trial balance they ask you to determine the amount that should be included in the current assets section of the balance sheet.
Your numbers will vary.
Given a balance sheet, they ask you to identify and explain the deficiencies in the statement.
Your numbers will vary.
What amount should be included in the current liabilities section of the company’s balance sheet? You are given accounts payable, bonds payable, salaries payable, notes payable due in 1 year and notes payable due in 5 years.
Your numbers will vary.
Liquidity refers to what:
Assume a company’s liquidity ratio is less than 1 before it purchases inventory on credit. What is the effect when it makes a purchase:
Asks which is a long-term asset