quiz2 w-answers - 1. Current assets are assets that are...

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Unformatted text preview: 1. Current assets are assets that are expected to be converted to cash or used up by the business within one year or the normal operating cycle, whichever is shorter. True Fals e Score: 0 of 1 2. The current ratio is a liquidity ratio that is computed as current assets divided by current liabilities. True Fals e Score: 1 of 1 3. Conservatism in accounting means that small monetary items can be ignored. True Fals e Score: 1 of 1 4. Comparability is the qualitative characteristic of accounting information that allows a statement reader to compare a company's performance from one year to the next. True Fals e Score: 1 of 1 5. Consistency means that a company uses the same accounting principles and methods as the other companies in the same industry. True Fals e Score: 1 of 1 6. The Monetary Unit Assumption assures that all important information needed by investors, creditors and managers is contained in the financial statements. True Fals e Score: 1 of 1 7. The cost principle requires that if a company buys a building for $2,000,000 in 2007 and that in 2009 the building is worth $2,900,000 the company would have to report the building at $2,000,000 in the Balance Sheet for 2009. True Fals e Score: 1 of 1 8. Alternate means of expressing a ratio include all of the following except a: Dollar amount Proportion Rate Percentage Score: 1 of 1 9....
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This note was uploaded on 10/19/2011 for the course ACCOUNTING 102 taught by Professor Singh during the Spring '11 term at Wayne State University.

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quiz2 w-answers - 1. Current assets are assets that are...

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