What is the effect on the cash flow of abc

Assignment Help Financial Management
Reference no: EM132322448

1) When a company with a current ratio of 1.2 pays a current liability:

A) Its current ratio remains unchanged.

C) Its debt to equity ratio increases.

B) Its current ratio increases.

D) Its current ratio decreases.

2) ABC buys widgets for $5 cash and sells them on account for $8. At the point of sale, what is the effect on the cash flow of ABC?

A) Increase $8

B) No effect

C) Decrease $5

D) Increase $3

3) On November 1, 2018, ABC signed a $100,000, 6%, six-month note payable with the amount borrowed plus accrued interest due six months later on May 1, 2019. ABC should report interest payable at December 31, 2018, in the amount of:

A) $0.

B) $1,000.

C) $2,000.

D) $3,000.

4) When we pay Sales tax we CR Cash and Debit

A) A Liability

B) An Asset

C) Revenue

D) An Expense

5) ABC buys widgets for $5 cash and sells them on account for $8. If ABC owns a widget, from a cash flow perspective the widget is valued at?

A) $8

B) $3

C) SO

D) $5

6) In an Operating Lease the Lessee records an Asset and a Liability

A) True

B) False

7) ABC sold inventory for $1,200 that was purchased for $700. ABC records which of the following when it sells inventory using a periodic inventory system?

A) Debit Cost of Goods Sold $700; credit Inventory $700.

B) No entry is required for cost of goods sold and inventory.

C) Debit Cost of Goods Sold $1,200; credit Inventory $1,200.

D) Debit Inventory $700; credit Cost of Goods Sold $700.

Reference no: EM132322448

Questions Cloud

Categorizing risk and risk management tools : Construct a framework for identifying, evaluating, and categorizing risk and risk management tools. Appraise the relationship between a heightened regulatory.
Create a good looking and engaging ePortfolio page : ITECH5402 Enterprise Systems - ePortfolio Assignment, Federation University Australia. Create a good looking and engaging ePortfolio page
What amount will be reported for accumulated depreciation : The machine is being depreciated on a straight-line basis. At the end of the second year, what amount will be reported for accumulated depreciation?
What are the merits of this proposition : As a result, business operations would receive the benefit of more modern and more efficient plant facilities. What are the merits of this proposition?
What is the effect on the cash flow of abc : ABC sold inventory for $1,200 that was purchased for $700. ABC records which of the following when it sells inventory using a periodic inventory system?
Designate alleles for individual : Designate alleles for each individual, indicating what each allele means. Briefly discuss what type of inheritance pattern this is likely to be.
What is abcs net income for the year : How many of the following transactions would affect operating cash flows reported in the statement of cash flows (all transaction involve cash)?
Make the entries for the sales and for the amount : A store sells merchandise to its customers. It knows that, on average, a certain percentage of its sales will be returned by customers.
Discuss four or more areas that the government makes : Discuss four or more areas that the government makes deliberate effort to provide effective financial information reporting.

Reviews

Write a Review

Financial Management Questions & Answers

  Competitive forces taking place in chasing investor dollars

Janus Fund Group, historically an actively managed mutual fund group that often charged load fees to enter and exit the fund. What changes do you suppose are taking place in financial services that is leading to the consolidation of mutual fund compa..

  Capital structure consists solely of debt and common equity

Hook Industries' capital structure consists solely of debt and common equity. What percentage of the company's capital structure consists of debt?

  Determine the cost of capital for your firm

Determine the cost of capital for your firm.

  What proportion of rights were actually exercised

The Archway Corporation produces PC's. It has grown rapidly and needs to raise $45 million in new equity. It has decided to do this using a rights issue.  Suppose the company anticipates all rights will be exercised but in fact they are not. If the e..

  About the annual dividend

Miller Brothers Hardware paid an annual dividend of $0.95 per share last month. Today, the company announced that future dividends will be increasing by 2.6 percent annually. If you require a 13 percent rate of return, how much are you willing to pay..

  What is the annual interest payment that the bondholders

What is the annual interest payment that the bondholders will receive? What is the percentage of stock in company 2016 capital structure?

  Calculate the standard deviation of the two assets

Calculate the standard deviation of the two assets in Exercises 1 and 2 and explain how you can use the standard deviation to tell which asset is riskier.

  Why is being trustworthy essential to success in business

Why is being trustworthy essential to success in the business world? Use at least two of the following scriptures to answer this question: Psalm 101:7, Proverbs 4:20-27, Proverbs 13:11, and Proverbs 28:12-13

  Create a portfolio that will mimic the entire market

How much needs to be invested in stock B if the goal is to create a portfolio that will mimic the entire market?

  What is required rate of return

Farley Inc. has perpetual preferred stock outstanding that sells for $48.00 a share. What is the required rate of return?

  Nominal interest rate

Tom deposits $100 in a bank; nominal interest rate is 10%. How much interest rate will he earn after

  What is the company target debt–equity ratio

If the company issued new securities in the same proportion as its target capital structure, what is the company’s target debt–equity ratio?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd