If current assets exceed current liabilities, payments of accounts payable willa. decrease the current ratio.b. increase the current ratio.c. decrease working capital.d. increase working capital.
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If current assets exceed current liabilities, payments of accounts payable will
a. decrease the current ratio.
b. increase the current ratio.
c. decrease
d. increase working capital.
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- Which should be subtracted from the net income when using the indirectmethod? A. Loss on sale of investmentB. Amortization of patentC. Increase in accounts receivableD. Increase in accounts payableThe effects on working capital and current ratio if a short-term payable is converted into a long-term payable would Working Capital Current Ratioa. Decrease Decreaseb. Increase Increasec. Increase No effectd. Decrease No effectAnalyze the following transactions and identify its effects on assets, liabilities, and capital. Write ? for increase, ? for decrease, NE for No effect and I/D if the effect is only in one major accounts. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10.
- Working capital is needed for the following purpose: O a. Payment of long term liabilities O b. Payment of wages and salaries O c. None of these O d. Purchase of fixed assetsWhich of the following scenarios can increase the return on assets? a. Increase the current and quick ratio b. Increase the profit margin, other things equal c. Other things equal, increase the amount of assets used d. Other thing equal, decrease the turnover of assets3. Any amount by which capital at the end of a period exceeds the amount required to maintain opening capital is ________. a. Profit b. Loss c. Asset d. Liability
- What increases the Assets & Equity? A. Fresh Capital B. Debts paid off C. Revenues D. None of the aboveCredits increase assets and decrease liabilities. decrease assets and increase liabilities. increase both assets and liabilities. decrease both assets and liabilities.The net assets approach of computing for the net income requires this item to be added to the ending capital. a. Beginning capital b. Additional investments c. Withdrawals d. Increase in Liabilities
- A decrease in economic benefits or decrease in assets or increase in liability resulting in decrease in equity is termed as. a. Capital b. Income c. Expense d. Liabilityis there any chance these other calculcations could be done please? thank you :) Return on Capital Employed(v) Asset turnover(vi) Non-current asset turnover(vii) Current Ratio(viii) Quick Ratio(ix) Inventory days(x) Receivables days(xi) Payable days(xii) Interest cover5. Current assets LESS current liabilities is the * a. Current Ratio b. Net Worth Ratio c. Working Capital d. Quick Assets