All of the following statements accurately describe the debt ratio except.
A. It is of use to both internal and external users of accounting information.
B. The ratio is computed by dividing total equity by total liabilities.
C. A relatively low ratio signifies lower risk.
D. Higher financial leverage means greater risk.
E. The ratio is computed by dividing total liabilities by total assets.
Answer: B
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During June 2019, Andy Company had the following transactions:
1. Sales of $185,000 ($142,000 on account, $43,000 for cash). 2. Collections on account, $128,000 3. Write-offs of uncollectible receivables, $1,900 4. Recovery of receivable previously written off, $600. Additional information: Ignore Cost of Goods Sold Andy uses the allowance method for uncollectibles. Andy estimates that 4.50% of its accounts receivable will be uncollectible. On June 1, 2019, the Accounts Receivable balance was $25,000 and the Allowance for Bad Debts had a normal account balance of $1,125. Requirements: a. Prepare the journal entries for the June 2019 transactions. Because the transactions represent a summary of events, use June 30 for all dates. Omit explanations. b. Prepare the June 30, 2019 adjusting journal entry. Omit explanation. c. What is the net realizable value of Accounts Receivable on June 30, 2019 (after the adjusting journal entry has been posted)? Show computations and label your work.
Which of the following is an advantage of conventional questionnaires and interviews used for job analysis?
A. The process takes lesser time than quantitative methods. B. The process is virtually free of faulty results. C. The process is both systematic as well as objective. D. The process involves employees, which increases their understanding. E. The entire process is free from bias and favouritism.
A lessee who is complying with terms of the lease cannot acquire the leased premises by adverse
possession. Indicate whether the statement is true or false
The ability to deduct student loan interest is phased out at higher incomes
Indicate whether the statement is true or false