Assume that a company has a current ratio of 3. Failure to record estimated warranty costs will cause the current ratio to be
A. overstated.
B. understated.
C. unchanged since the effects offset one another.
D. unchanged since it has no impact on any current asset or liability accounts.
Answer: A
You might also like to view...
Answer the following statements true (T) or false (F)
1.According to the principle of comparative advantage, an open trading system results in resources being channeled from uses of low productivity to those of high productivity. 2.With increasing opportunity costs, comparative advantage depends on a nation's supply conditions and demand conditions; with constant opportunity costs, comparative advantage depends only on demand conditions. 3.The existence of exit barriers tends to delay the closing of inefficient firms that face international competitive disadvantages. 4.MacDougall's empirical study of comparative advantage was based on the notion that a product's labor cost is underlaid by labor productivity and the wage rate. 5.The MacDougall study of comparative advantage hypothesized that in those industries in which U.S. labor productivity was relatively high, U.S. exports to the world should be lower than U.K. exports to the world, after adjusting for wage differentials.
An "RFP" in research is a "request for proposal."
Indicate whether the statement is true or false
According to ______ contingency model of leadership, a leader’s personality influences the leader’s behavior style (task or relationship oriented) and that the situation moderates the relationship between the leader’s style and effectiveness.
A. GLOBE B. implicit C. trait D. Fiedler’s
Describe the two types of training that should be provided to expatriates and why these trainings are critical to expatriate success.
What will be an ideal response?