ACC 210P Chapter 8

ACC 210P Chapter 8 - ACC 210P Chapter 8 1. 1. Acceptable...

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ACC 210P Chapter 8 1. 1. Acceptable current ratios vary from industry to industry, but a general rule of thumb is that a current ratio greater than ____________________ is appropriate. 2. The current ratio is computed by dividing current assets by ____________________. 3. The operating cash flow ratio is computed by dividing ____________________ by current liabilities. 4. Crather, Inc. has a note payable that is due on December 31, 2010. In its December 31, 2009, balance sheet, this note payable should be classified as a(n) ____________________. 5. Accounts payable represent amounts owed to outside suppliers of goods and services; whereas ____________________ reflect amounts owed in which a formal agreement or contract has been signed. 6. An obligation that involves an existing condition for which the outcome is not known with certainty and depends upon some event that will occur in the future is called a(n) ____________________. 7. If no reasonable estimate of the loss can be made, then a contingent liability should be recognized in the ____________________. 8. ____________________ is the liability created when customers pay for goods or services in
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ACC 210P Chapter 8 - ACC 210P Chapter 8 1. 1. Acceptable...

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