Which of the following would not result in an increase in both the current ratio and the acid-test ratio? O Increase in inventory O Increase in accounts receivable O Increase in current investments O Increase cash

Q: Which element of financial performance decreases in economic benefits during the accounting period…

A: Accounting equations are on the basis of the dual aspect concept of accounting. It means that every…

Q: If a firm’s current ratio less quick ratio is 1.0, then:     a. the firm’s inventory is equal to…

A: Formulas for the calculations of current ratio and quick ratio are as follows:- Current ratio =…

Q: source

A: Decrease in accounts payable: When the current liabilities of the company decreases, it means that…

Q: Which should be subtracted from the net income when using the indirect method? A. Loss on sale of…

A: A cash flow statement is a financial statement that summarizes the cash and cash equivalents…

Q: hich of the following would be classified as a use of cash?     a. An increase in depreciation.…

A: Depreciation is a non cash expense, hence increase or decrease of depreciation does not effect cash.

Q: Which of the following usually is least important as ameasure of short-term liquidity?a. Quick…

A:

Q: The return on assets ratio is a: Group of answer choices A)Liquidity ratio. b)Solvency ratio.…

A: Return of assets calculates the amount of profit generated on the amount of assets invested.

Q: All are financial measures, except: A. Market share B. Revenue growth C. Earnings per share D.…

A: Solution: All are financial measures, except "Reduction of past due accounts".

Q: How does a decrease in income taxes receivables on the balance sheet, impact cash flow?  What is the…

A: Step 1   The statement of cash flows is a statement that shows cash flows movements.

Q: which of the following transactions and events would result in an improvement in Interest Coverage…

A: The correct answer for the above mentioned question is given in the following steps for your…

Q: Interest Expense on Notes Payable is recorded with an increase to Interest Expense, which decreases…

A: The interest expense on notes payable would be recorded with an increase to interest expense, which…

Q: Which of the following ratios is most useful in evaluating solvency? a. Receivables turnover ratio.…

A: Solvency ratios disclose the firm's ability to meet its long-term liabilities as and when they…

Q: Which of the following should be deducted from net income in computing net cash flows from operating…

A: Introduction: Statement of cash flows: All cash in and out transactions in an accounting period is…

Q: Indicate the effect of the transactions listed in the following table on total current assets,…

A: Cash is obtained through short-term bank loans.  Here, current liability is increasing and also cash…

Q: Which of the following should be added to net income in calculating net cash flow from operating…

A: Cash flows from operating activities: It is a section of Statement of cash flow that explains the…

Q: Which of the following is one measure of liquidity?   a. Quick ratio   b. Profit margin   c.…

A: Introduction: Liquidity: Liquidity means which can be easily converted in to the cash with in short…

Q: Which of the following is NOT a reason why cash flow may not equal net income? a. Capital…

A: The relationship of cash flow with net income is  Cash flow =net…

Q: Which of the following should be subtracted from net income in computing net cash flows from…

A: Introduction: Statement of cash flows: All cash in and out flows are shown in statement of cash…

Q: more than one answers is correct ( )Which of the following should NOT be added to net income in…

A: In calculation of cash flow from Operating Activities using indirect method, the following…

Q: Inflation can have significant effects on income statements and balance sheets, and therefore on the…

A: Inflation : It is the situation in which consumer's demand exceeds supply for goods and services.…

Q: a. How does the return on total assets differ from the return on stockholders’ equity?b. Which ratio…

A: a. When return on total assets is considered, interest expense is added to the net income and…

Q: 23 Which element of financial performance decreases in economic benefits during the accounting…

A: Accounting equations are on the basis of the dual aspect concept of accounting. It means that every…

Q: Which of the following statement on the firm's net working capital is incorrect? A. Holding other…

A: Formula for net working capital is current assets - Current liabilities.

Q: Which of the following questions cannot be answered when analyzing the information presented in an…

A: Answer: Income statement is the statement which shows the profit or loss when the revenue and…

Q: Which of the following would not result in an increase in both the current ratio and the acid test…

A: Current ratio is a financial ratio which helps to determine or analyse the liquidity in a company in…

Q: Which of the following transactions causes an increase in working capital?    a. Sale of merchandise…

A: Working capital = Current assets - Current liabilities

Q: Which of the following should be subtracted from net income in computing net cash flows from…

A: Statement of cash flows: It is a financial statement that shows the increase or decrease in the cash…

Q: Which one of the following will decrease the length of the cash cycle O a. Increase in…

A: The Cash Conversion Cycle (CCC) is one of several quantitative indicators used to assess a company's…

Q: What does an increase in the allowance for receivables result in? A A decrease in current…

A: Account receivable: The amount of money to be received by a company for the sale of goods and…

Q: Which of the following is a solvency ratio?   a. Times interest earned. b. Inventory turnover ratio.…

A: The correct option is (A) Times Interest Earned   Explanation: This ratio is the measure of a…

Q: Using the indirect method, which of the following adjustments to convert net income to net cash…

A: Statement of cash flows: This statement reports all the cash transactions which are responsible for…

Q: Which of the following is included in the calculation of the quick (acid-test) ratio?a. Inventory…

A: While Calculating the quick ratio, only quick assets are taken into consideration

Q: The numerator for the quick ratio is calculated by: Select one: a. Deducting inventory and prepaid…

A: The question is related to Ratio Analysis. The Quick Ratio is sometimes called the "acid-test" ratio…

Q: Cash flow from operating activities is increased by:     a. depreciation and amortization     b. a…

A: Cash flow statement provided information about the cash inflows and cash outflows of the…

Q: Is it possible to have “record net income” for a quarter and negative cash flows at the same time?…

A: The first thing to be noted is that Net income is reported in statement of profit and loss, where as…

Q: In which financial statement are the incomes that cause an increase in equity and expenses that…

A: The financial statements of the business include the income statement, balance sheet and cash flow…

Q: Which of the following will be reflected as a cash inflow in the statement of cash flows of an…

A: Cash flow statements are a vital part of financial statements and are prepared by each and every…

Q: Which of the following should be added to net income in calculating net cash flow from operating…

A: Cash flow from operating activities includes the cash inflows and outflows from the business…

Q: 6 ________________are decreases in economic benefits during the accounting period in the form of…

A: Expenses are those expenditures in business which decreases the assets in business also they can…

Q: All of the following is a source of cash except:   Group of answer choices decrease in inventory…

A: There are many sources of cash available in the company but some time money comes from one source…