[The following information applies to the questions displayed below.] The following information is taken from the balance sheet of Menendez Company on January 1, Year 1: Current Assets$12,000 Current Liabilities$4,000 Equipment 52,000 Long-term Liabilities 32,000 Land 36,000 Common Stock 64,000 Total Assets$100,000 Total Liab. & Equity$100,000 Use the information on January 1, Year 1 to determine the effect of the following entry on the current ratio of Menendez Company:Accounts payable2,000 Cash 2,000 How will this transaction affect the current ratio?
A. It have no effect on the current ratio.
B. It will cause the current ratio to decrease.
C. It will cause the current ratio to increase.
D. It will potentially affect the current ratio, but the direction of the change cannot be determined without more information.
Answer: C
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Limited partners have limited liability for partnership obligations
a. True b. False Indicate whether the statement is true or false
The charge that is most likely a fixed cost is for:
A) Materials. B) Equipment rental. C) Direct labor. D) Utilities.
List and discuss the primary flows in a supply chain.
What will be an ideal response?
Answer the following statements true (T) or false (F)
1. A petty cash fund may be established for minor expenditures, such as postage. 2. A petty cash fund is established by making a check payable to Petty Cash, cashing the check, and placing the funds in the cash register. 3. The journal entry to record the set-up of a petty cash fund is to debit Petty Cash and to credit Cash. 4. The total of cash in the petty cash box plus the amount of the petty cash ticket receipts should total the beginning amount of the petty cash fund. 5. Because petty cash funds are for small dollar amounts, internal control policies to govern the fund are not necessary. 6. Syrio's Snowboards has decided to increase its petty cash fund from $50 to $100. The journal entry to record this increase will include a debit to petty cash for $100.