Quiz – Assets
Intermediate Accounting
Spiceland, Nelson, and Thomas
10th Edition
Current assets include cash and other assets that are expected to become cash (or consumed):
Current assets include cash and other assets that are expected to become cash (or consumed):
Austin Financial had its net income increase sharply from the prior year, yet its net cash provided from operations declined. Which of the following could explain this?a. The company’s dividend to common stockholders fell.b. The company’s spending on fixed assets declined.c. The company’s cost of goods sold increased.d. The company’s depreciation expense declined.e. The company’s…
On 12/31/15, Barnes Inc had $510 million of retained earnings on its balance sheet. This amount was exactly the same as the following year. If no earnings restatements were issued, which of the following must be CORRECT?a. If the firm lost money, then it must have paid dividends.b. The firm must have had zero earnings…
Which of the following is not on a company’s balance sheet under current liabilities? a. Accounts payable b. Notes payable to the bank c. Accrued wages d. Cost of goods sold e. Payroll taxes.
The current ratio is calculated as how:
You are provided with a balance sheet for Games Inc. along with the value of retained earnings. You are asked to determine whether the company would be able to buy an asset with a cost of $200,000.
Analysts following Howe Industries discovered that relative to the prior year, the firm’s cash provided from operations increased, yet cash, as reported, decreased. Which of the following factors could explain this outcome?a. The firm reduced or cut its dividend.b. The company made large investments in fixed assets.c. The firm sold a division and received cash…
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