A firm with assets that will convert to cash within the next 12 months, less than its obligations to pay cash in this same interval, has
a. positive working capital and a current ratio that is less than one.
b. positive working capital and a current ratio that exceeds one.
c. negative working capital and a current ratio that exceeds one.
d. negative working capital and a current ratio that is less than one.
e. a serious liquidity problem.
D
You might also like to view...
A merchandiser purchased inventory on account for $17,000. In a periodic inventory system, the journal entry to record the purchase would include ________.
A) a debit to Purchases for $17,000 and a credit to Accounts Payable for $17,000 B) a debit to Accounts Payable for $17,000 and a credit to Purchases for $17,000 C) a debit to Merchandise Inventory for $17,000 and a credit to Accounts Payable for $17,000 D) a debit to Accounts Payable for $17,000 and a credit to Merchandise Inventory for $17,000
When duties cannot be segregated, the most important internal control procedure is
a. supervision b. independent verification c. access controls d. accounting records
A corporation has all of the following except
A) government regulations. B) a limited existence. C) separation of ownership and control. D) its own tax liability.
Which of the following statements about a job order accounting system is false?
a. Will provide better inventory valuation for financial statement purposes. b. Will help prevent stockouts. c. Will assist management in estimating when current jobs will be completed. d. Will be of great help to a manufacturing company but is of little value to a service organization.