1. which of the following transactions and events would result in a deterioration in Quick Ratio? a. selling goods on credit at the normal mark-up b. acquiring cash proceeds from a 5-year interest-only bank loan c. a payment for wages owing from the previous period d. A and B only e. A and C only f. B and C only g. All of the above h. None of the above

1. which of the following transactions and events would result in a deterioration in Quick Ratio? a. selling goods on credit at the normal mark-up b. acquiring cash proceeds from a 5-year interest-only bank loan c. a payment for wages owing from the previous period d. A and B only e. A and C only f. B and C only g. All of the above h. None of the above

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 11MC: Which of the following best represents a positive product of a lower number of days sales in...

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Super Corp. has an acid test ratio 1.5 to 1.0 which of the following will causethis ratio to deteriorate?a. Payment of cash dividends previously declared.b. Borrowing short term loan from a bank.c. Sale on inventory on account.fd. Sale of equipment at a loss.
Which of the following best represents a positive product of a lower number of days sales in receivables ratio? A. collection of receivables is quick, and cash can be used for other business expenditures B. collection of receivables is slow, keeping cash secured to receivables C. credit extension is lenient D. the lender only lends to the top 10% of potential creditors
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1. Which of the following note shall be discounted to get the initial measurement? A. Interest bearing note due in 3 years B. Note due in 12 months C. Non-interest bearing note due in 3 years D. Note due in 6 months 2 Which is true concerning the presentation of receivables in the statement of financial position? A. Non-trade receivable is presented as a non-current asset B. Only trade accounts receivable and trade notes receivable shall be presented as "Trade and Other Receivable" C. Trade and Non-trade Receivables are shown separately in line with materiality and aggregation principle D. Trade and Non-Trade Receivables which are currently collectible shall be presented as one line item called "Trade and Other Trade receivables"
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ats Which of the following would cause a company's current ratio to increase? The sale of a building for cash The sale of inventory for cash Paying off long term debts with cash. Selling inventory on credit.. None of the above.
(a) If Current Ratio is 2:1 state giving reason of the following transactionwould(i) Improve (ii) Reduce or (iii) Not change Current Ratio(1) Bills Receivable drawn(2) Bills Receivable Dishonoured (3) Bills Receivable endorsed to Creditors(4) Sales of Goods for cash at par(5) Sales of Goods for cash at Profit(6) Sales of Assets for Cash(7) Bills Payable given to creditors(b) If the Liquid ratio is 1:1, find whether the following transactionswould (ii) Improve (ii) Reduce or (iii) Not change Liquid Ratio1) Purchase of goods for cash2) Purchase of goods on credit3) Payment of Tax Provision4) Sales of short term investment at par5) Sales of Investment at profit.
Hello,the answer is incorrect Here's a hint: The interest for the financial period is calculated from the sum of the long-term interest the company had during the financial period and the short-term interest due in that financial period. Interest is not paid, for example, on accounts payable. Concretely, the interest is therefore calculated from the values according to the opening balance sheet of the financial period, long-term + maturing bank loans. A new loan taken out at the end of the accounting period is not reflected in the interest paid during the accounting period.
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(a) A company has determined that the length of time a receivable is outstanding is the most appropriate credit risk characteristic for determining expected credit losses. The following is an aging schedule for the company's accounts receivable as at December 31, 2023: Customer's name Aber Bohr Chow Datz Others Expected rate of credit loss Expected credit losses Total amount owed $28,000 50,000 42,000 eTextbook and Media 27,000 158,000 $305,000 $41,160 Current (not yet due) Account Titles and Explanation $50,000 15,000 95,000 $160,000 3% $4,800 1-30 12,000 $9,000 $19,000 15,000 $36,000 6% Number of days past due $2,160 31-60 13,000 10% $3,200 61-90 $15,000 15,000 Debit $32,000 $30,000 $47,000 25% Over 90 $7,500 $27,000 20,000 On December 31, 2023, the unadjusted balance in the Allowance for Expected Credit Losses (prior to the aging analysis) was a credit of $20,000. 50% Journalize the adjusting entry to record the expected credit losses on December 31, 2023. (Credit account titles are…