Windham Corporation has current assets of $400,000 and current liabilities of $500,000. Windham Corporation's current ratio would be increased by:
A. the collection of $100,000 of accounts receivable.
B. refinancing a $100,000 long-term loan with short-term debt.
C. the payment of $100,000 of accounts payable.
D. the purchase of $100,000 of inventory on account.
Answer: D
You might also like to view...
A ten-year bond issue of $400,000, interest rate of 9% paid semiannually, is sold for $440,000 when the market rate is 8%. The bonds were not sold between interest dates and the straight-line amortization method is used. The entry to record the first interest payment would include
a. a debit to Cash of $18,000. b. a debit to Bond Interest Payable of $18,000. c. a debit to Premium on Bonds Payable of $2,000. d. a credit to Bond Interest Expense of $16,000.
Niche marketing offers smaller companies an opportunity to compete by focusing their limited resources on serving niches that may be unimportant to or overlooked by larger companies
Indicate whether the statement is true or false
A 90-day, 12% note for $20,000, dated September 10, is received from a customer on account. If the note is discounted at 15% on October 10, the due date is
A) December 9 B) December 10 C) December 11 D) December 8
An individual incentive plan for a factory worker directly involved in producing a product would normally be:
a. a bonus program b. a commission c. the Scanlon plan d. piecework e. a profit-sharing plan