1.) Carrier Travel has cash of $200, receivables of $800, and supplies of $500. Carrier owes $400 on accounts payable and has salaries payable of $100. Carrier's current ratio is: .54 3.00 .33 1.67

2.) ABC's current ratio is consistently between 10 and 11. What should ABC do? Nothing. This ratio is healthy and as they say, "cash is king". They should try to raise it even further. They should lower it by paying off their debts earlier. They should consider investing some of their excess cash in order to earn some extra revenue.

3.) What do closing entries accomplish? Answer a. Bring the capital account to its correct ending balance b. Zero out the revenue, expense, and withdrawals c. Transfer revenues, expenses, and withdrawals to capital

4.)Assets and liabilities are listed on the balance sheet in order of their: a. Liquidity b. Purchase date c. Balance d. Adjustments

5)Carrier travel has cash of $200, receivables of $800,and supplies of $500. Carrier travel owes $400 on accounts payable and has salaries payable of $100. Currier's current ratio is:

a.) 0.54

b.) 3.00

c.) 0.33

d.) 1.67