If a firm uses part of the cash it received from the payment of an account receivable to buy inventory and leaves the rest in its bank account, its current ratio will remain unchanged.A) True B) FalseIf a firm uses cash to purchase inventory, its quick ratio will increase.A) True B) FalseAn excess of uses of funds over the sources of funds in a firm’s financial statements implies that the firm incurred a loss over the relevant accounting period.A) TrueB) False
A(n) ______________ asset is one that can be converted into cash quickly without significant loss in value. A) currentB) fixedC) intangibleD) liquidE) long-termWhich of the following is not a current asset?A) InventoryB) Cash on handC) PatentsD) Accounts receivableE) Marketable securities
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