Please help--I can seriously find these no where =( 1. _____. If comparative bal

Question

Please help--I can seriously find these no where =(

1.       _____.  If comparative balance sheets indicate no asset for notes receivable on the first, or base, date and an asset of $80,000 on the later date, the increase of $80,000 cannot be stated as a percent of zero.

2.       _____.  The relationship of 120 to 100 can be expressed as 1.2, 1.2:1, or 120%.

3.       _____.  The terms acid-test ratio and quick ratio refer to the same ratio - the instant debt-paying ability of a company.

4.       _____.  The excess of current assets over current liabilities is referred to as leverage.

5.       _____.  If a firm has a current ratio of 2:1, the subsequent receipt of a 60-day note receivable on account will cause the ratio to decrease.

6.       _____.  If the accounts receivable turnover for the current year has decreased when compared with the ratio for the preceding year, there has been an acceleration in the collection of receivables.

7.       _____.  The number of days sales in inventory is one means of expressing the relationship between the cost of goods sold and inventory.

8.       _____.  The rate earned on total common stockholders equity for most thriving businesses will be higher than the rate earned on total assets.

9.       _____.  The price-earnings ratio is a profitability measure commonly quoted in the financial press.

10.  _____. The effects of the differences in accounting methods are of little importance when analyzing comparable daa from competing businesses.  

Explanation / Answer

Hi,

Please find the answers as follows:

1) False

2) True

3) True

4) False

5) False

6) True

7) False

8) True

9) True

10) False

Thanks.

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