You observe that a company's current ratio has increased significantly. This could indicate that:
a. contingent liabilities are not recorded.
b. accounts payable is understated.
c. expenses are inappropriately capitalized as assets.
d. fixed assets are overstated.
b
FEEDBACK: a. Incorrect.
b. Correct.
c. Incorrect.
d. Incorrect.
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A company with a current ratio of 2.4 times will see that ratio decrease when the company
a. pays a large current liability. b. declares a 10 percent stock dividend on its common stock. c. borrows cash by issuing a short-term note payable. d. converts a short-term liability to a long-term liability.
Which of the following investments in securities would require the preparation of consolidated financial statements by the investor corporation?
a. investments in securities for the purpose of exerting control over the investee's day-to-day operations b. investments in securities for the purpose of exerting significant influence over the investee's dividend payout policy c. investments in securities for the purpose of exerting significant influence over the investee's licensing of a patent d. investments in securities for the purpose of exerting significant influence over the investee's licensing of day-to-day operations e. none of the above
When equal work does not produce equal outcomes, or when one employee is paid disproportionately to another for doing the same job, then there is a lack of
a. Operational justice b. Distributive justice c. Procedural justice d. Mechanical justice
Sensitivity training started as ______.
A. leadership training B. a method to improve community leadership C. a lecture with role-playing D. participants observation of analysis