Reference no: EM133010350
Question 1: The most important reason for preparing a statement of cash flows is to compute the change in cash.
True
False
Question 2: Paid cash for office supplies, $9,000. What is the effect on working capital, the current ratio, and the acid-test ratio? Assume the current ratio is 1:1 before this transaction occurred.
Option 1: Increase working capital and current ratio, decrease acid-test ratio.
Option 2: No effect on all three items.
Option 3: No effect on working capital and current ratio, decrease acid-test ratio.
Option 4: Decrease all three items.
Question 3: Depreciation provides cash for replacing plant assets; and this is the reason depreciation is shown as an inflow of cash on the statement of cash flows.
True
False
Question 4: The indirect method of computing cash flows from operating activities adjusts net income rather than each income statement item to a cash basis.
True
False
Calculate the ending balance in the owner capital account
: JYN Consulting reported net income of P25,000. Calculate the ending balance in the Owner's Capital account to be reported on the Statement of Owner's Equity.
|
Compute a weighted average forecast
: Compute a weighted average forecast using a weight of 0.4 for the most recent period, 0.3 for the next most recent, 0.2 for the next, and 0.1 for the next
|
What the balance remaining in prepaid rent on december be
: What the balance remaining in Prepaid Rent on December 1 should be? If a company reporting on calendar year basis, paid P180,000 cash on January 1 for one year.
|
Which transactions would result in increase in current ratio
: Which transactions would result in an increase in the current ratio assuming that the ratio presently is 2:1? Customer paid her accounts receivable.
|
What is the effect on working capital and the current ratio
: Paid cash for office supplies, $9,000. What is the effect on working capital, the current ratio, and the acid-test ratio? Assume the current ratio is 1:1
|
Which statements is true about the calculations
: Which of the following statements is true about the calculations you should perform when comparing the NPV's of the current and proposed policies
|
How much salary expense should be recorded two days
: The calendar year accounting period ends on Wednesday, December 31. How much salary expense should be recorded two days later on January 2?
|
Experience the same frustrations that you experienced
: If you were the leader in a flat organization, do you think you could find ways to make sure that the employees didn't experience the same frustrations that you
|
What month-end adjusting entry to record salaries earned
: Magic Shop pays each of its two office employees each Friday. What the month-end adjusting entry to record the salaries earned but unpaid is?
|