If marketable securities increase, then cash should usually decrease by a similar amount, since cash was probably used to purchase the securities. An exception to this is:
a. when the company paid through a check.
b. when the marketable securities are purchased through a broker.
c. when the company incurred debt or traded an asset for the securities.
d. when the transaction was not recorded in the books of accounts.
c
FEEDBACK: a. Incorrect.
b. Incorrect.
c. Correct.
d. Incorrect.
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Assume that the net sales for a company is $5,000, cost of goods sold is $3,000, and average inventory is $1,500 . Calculate the inventory turnover ratio
a. 2 b. 0.5 c. 3.3 d. 1.3
The Equinox Fabrication Plant suffered a fire incident in August, and most of the records for the year were destroyed. The following accounting data for the year were recovered:
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A) $35.09
B) $1.86
C) $29.58
D) $62.71
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