Which of the following is not true about the quick ratio?
a. It is equal to or less than the current ratio; b. It measures liquidity; c. It includes all
working capital accounts; d. It is the same as the acid-test ratio;
e. Generally, it should be no less than 1 to 1
C
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From the following details of a merchandiser, calculate the cost of goods sold. (Assume the merchandiser uses the periodic inventory system.)
A) $115,650
B) $59,800
C) $113,800
D) $51,650
Assets become expenses when:
A) purchased for cash or on credit. B) asset is delivered. C) they are paid for in cash. D) their economic benefits expire.
Inventory cycle time is the agreed upon time between the purchase of a product and the delivery of the product.
Answer the following statement true (T) or false (F)
Which of the following forms is used to insure buildings that are under construction?
A) builders risk coverage form B) floor plan coverage form C) new construction coverage form D) labor and materials coverage form