When examining whether a company has underrecorded accounts payable, all of the following ratios are helpful EXCEPT:
a. Quick assets ÷ Current liabilities
b. Accounts payable ÷ Purchases
c. Accounts payable ÷ Cost of goods sold
d. Unearned revenue ÷ Accounts payable
d
FEEDBACK: a. Incorrect.
b. Incorrect.
c. Incorrect.
d. Correct.
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A petitioner must file a petition for certiorari, asking the Supreme Court to hear the case.
Answer the following statement true (T) or false (F)
x is a normally distributed random variable with a mean of 24 and a standard deviation of 6. The probability that x is less than 11.5 is
A. 0.0186. B. 0.9814. C. 0.0076. D. 0.9924.
The Copper Grill has the following current assets: cash, $12 million; receivables, $50 million; inventory, $44 million; and other current assets $4 million. The Copper Grill has the following liabilities: accounts payable, $38 million; current portion of long-term debt, $7 million; and long-term debt, $12 million. Based on these amounts, calculate the current ratio and the acid-test ratio for The Copper Grill.
What will be an ideal response?
If the allowance method is used, how do the two entries recorded in connection with the recovery of an uncollectible account affect the elements of the financial statements? (Hint: Consider the effect of both entries taken together.)
A. Decrease total assets B. Increase total assets and stockholders' equity C. Increase stockholders' equity D. No effect on total assets or stockholders' equity