What financial ratio is most affected by the action

Reference no: EM131820632

Question: Lance Berkman is the controller of Saturn, a dance club whose year-end is December 31. Berkman prepares checks for suppliers in December, makes the proper journal entries, and posts them to the appropriate accounts in that month. However, he holds on to the checks and mails them to the suppliers in January.

Requirements: 1. What financial ratio(s) is(are) most affected by the action?

2. What is Berkman's purpose in undertaking this activity?

Reference no: EM131820632

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