Chapter 9 Questions(1)

Chapter 9 Questions(1) - 1 Assume the current ratio is 3 to...

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a. increase b. decrease c. be unchanged since the effects offset one another d. be unchanged since it has no effect on any current accounts 1. Assume the current ratio is 3 to 1. Estimating the warranties expense on the period’s sales would cause the current ratio to
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B.  decrease
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2.    The  landlord  records  the  security  deposit  she  collects from the tenant as a(n) a. asset b. liability c. contingent liability d. contra liability
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B . liability
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3. If a company purchases $3,000 worth of inventory  with terms of 1/15, n30 and pays within 15 days, then  the amount paid to the seller would be a. $2,550 b. $2,970 c. $3,000 d. $3,030
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B.  $2,970
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4.    An  example  of  a  current  liability  that  must  be  accrued is a. accounts payable b. current maturity of long-term debt c. revenue received in advance. d. income taxes payable.
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D.  income taxes payable.
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5.  On  October  1,  Rachel  Company  borrowed  $60,000  from  Center National Bank on a 1-year, 7% note. If the company's 
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Chapter 9 Questions(1) - 1 Assume the current ratio is 3 to...

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