If current assets exceed current liabilities, payments of accounts payable willa. decrease the current ratio.b. increase the current ratio.c. decrease working capital.d. increase working capital.
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If current assets exceed current liabilities, payments of accounts payable will
a. decrease the current ratio.
b. increase the current ratio.
c. decrease
d. increase working capital.
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- Which one of the following will decrease net working capital? Select one: a. A decrease in accounts payable. b. A sale of inventory at a profit. c. A sale of a fixed asset for cash. d. An increase in accounts receivable. e. An increase in accounts payable.The effects on working capital and current ratio if a short-term payable is converted into a long-term payable would Working Capital Current Ratioa. Decrease Decreaseb. Increase Increasec. Increase No effectd. Decrease No effectAnalyze the following transactions and identify its effects on assets, liabilities, and capital. Write ? for increase, ? for decrease, NE for No effect and I/D if the effect is only in one major accounts. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10.
- Working capital is needed for the following purpose: O a. Payment of long term liabilities O b. Payment of wages and salaries O c. None of these O d. Purchase of fixed assets3. Any amount by which capital at the end of a period exceeds the amount required to maintain opening capital is ________. a. Profit b. Loss c. Asset d. LiabilityCredits increase assets and decrease liabilities. decrease assets and increase liabilities. increase both assets and liabilities. decrease both assets and liabilities.
- Which of the following scenarios can increase the return on assets? a. Increase the current and quick ratio b. Increase the profit margin, other things equal c. Other things equal, increase the amount of assets used d. Other thing equal, decrease the turnover of assetsThe net assets approach of computing for the net income requires this item to be added to the ending capital. a. Beginning capital b. Additional investments c. Withdrawals d. Increase in LiabilitiesWhat increases the Assets & Equity? A. Fresh Capital B. Debts paid off C. Revenues D. None of the above
- A decrease in economic benefits or decrease in assets or increase in liability resulting in decrease in equity is termed as. a. Capital b. Income c. Expense d. Liabilityis there any chance these other calculcations could be done please? thank you :) Return on Capital Employed(v) Asset turnover(vi) Non-current asset turnover(vii) Current Ratio(viii) Quick Ratio(ix) Inventory days(x) Receivables days(xi) Payable days(xii) Interest coverThe factor payment for the use of financial capital (loans and equity investments) is called... (a)Interest and dividends. (b)Wages. (c)Rent. (d)Profit.