Four measures for assessing short-term liquidity risk are (1) Current ratio, (2) Quick ratio, (3) Cash flow from operations to current liabilities ratio, and (4) Working capital turnover ratios
Indicate whether the statement is true or false
T
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Chen's Department Store is a merchandising company that uses the periodic inventory system. Selected account balances are listed below: Sales $175,000 Purchases 90,000 Inventory (beginning) 23,000 Inventory (ending) 17,000 Purchase returns and allowances 3,000 Purchase discounts 7,000 Transportation-in 4,000 Sales discounts 8,000 Sales returns and allowances 5,000 Refer to the account information
for Chen's Department Store. Calculate Chen's net sales. a. $162,000 b. $167,000 c. $170,000 d. $175,000
Marketers have traditionally classified products on the basis of characteristics such as durability, tangibility, and use
Indicate whether the statement is true or false
How should dividends in arrears be shown on a corporation's balance sheet?
A) As an increase in liabilities. B) In a note or in the body of the financial statements. C) As a decrease in assets. D) As an increase in stockholders' equity.
On June 3, Addison Company purchased merchandise worth $1,600 on credit, terms 2/10, n/30. The account was paid on June 10. What is the required journal entry to record the payment under the periodic inventory system?
A) Accounts Payable 1,568 Purchases Discounts 32Cash 1,600 B) Accounts Payable 1,600 Purchases Discounts 32Cash 1,568 C) Cash 1,568 Purchases Discounts 32Accounts Payable 1,600 D) Cash 1,600 Purchases Discounts 32Accounts Payable 1,632