Indicate whether each of the following statements about financial statement analysis is true or false.________ a) Working capital is a measure of the amount of current assets a company would have left after paying its current liabilities.________ b) If a transaction causes a company's working capital to increase, the transaction caused the company to become less liquid.________ c) Interpretation of a company's current ratio can be difficult because it is an absolute amount.________ d) The quick ratio is a more conservative variation of the current ratio.________ e) The quick ratio is usually calculated by using the following equation: (cash + receivables + current marketable securities) ÷ current liabilities.
What will be an ideal response?
a) T b) F c) F d) T e) T
a) Working capital is a measure of the amount of current assets a company would have left after paying its current liabilities.
b) If a transaction causes a company's working capital to increase, the transaction may have caused the company to become more liquid.
c) Interpretation of a company's working capital can be difficult because it is an absolute amount.
d) The quick ratio is a more conservative variation of the current ratio.
e) The quick ratio is usually calculated by using the following equation: cash + receivables + current marketable securities ÷ current liabilities.
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A. vision statement B. code of ethics C. mission statement D. value pact E. management belief statement
Bradley Corporation has three production departments A, B, and C. Bradley Corporation also has two service departments, Administration and Personnel. Administration costs are allocated based on value of assets employed, and Personnel costs are allocated based on number of employees. Assume that Administration provides more service to the other departments than does the Personnel Department. Dept
Direct Costs Employees Asset Value Admin. $900,000 25 $450,000 Personnel 350,000 10 600,000 A 700,000 15 300,000 B 200,000 5 150,000 C 250,000 10 800,000 Refer to Bradley Corporation. Using the step method, what amount of Administration costs is allocated to C (round to the nearest dollar)? a. $389,189 b. $145,946 c. $291,892 d. $72,973
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What will be an ideal response?
Which of the following is NOT included in the rules of priority established by Article 9?
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