Reference no: EM131584245

Answer them correctly and completely

1- For a retail company, if accounts payable historical has one month's inventory purchases what is the fraction of cogs that the auditor should expect in A/Payable?

A- 1/3

B-1/6

C-1/2

D-1/12

2- If the company records a sale with 25% gross margin, what happens to the current ratios for a $1 sale?

A- current ratio increased by the amount of the sale

B- current ratio decreased by the amount of the sale

C- current ratio increased by the 25% of the sale

D- current ratio decreased by the 25% of the sale

3- If a company has a quick ratio of 3:1, and then they pay a dollar on 12/31 on an A/payable due (no discount) what happens to the quick ratio?

A- The quick ratio increase

B- The quick ratio decrease

C- The quick ratio remains the same

4- If a company forgets to depreciate their fixed assets for the year, what happens to the debt to equity (leverage) ratio

A- Increase

B- Decrease

C- Stays the same

5- If the auditor thinks that some inventory may need to be written off (not extraordinary), what gappens to the current ratio and net marvin ratio

A- Current ratio increases, net margin increases

B- Current ratio increases, net margin decreases

C- Current ratio decreases, net margin increases

D- Current ratio decreases, net margin decreases