15. Last year, Duehl Rockets had a quick ratio of 4.0 and this year they have a quick ratio of 3.0. In which year did Duehl have a more desirable quick ratio?

Question 15 options:

• This year because the quick ratio is lower

• It cannot be determined because quick ratios are too variable

• Last year because the quick ratio was higher

• None of the choices

14. An employee works 45 hours a week at rate of $20/hour and any hours over 40 must be paid at 1.5 times the regular hourly rate. How much is his gross rate?

Question 14 options:

• $800.00

• $950.00

• $1,350.00

• $900.00

13. Upon preparing the bank reconciliation statement, an adjusting entry was made that debited cash and credited interest revenue. Therefore the bank reconciliation must have included an item that was:

Question 13 options:

• added to the cash ledger balance

• deducted from the bank statement

• added to the bank statements

• deducted from the cash ledger balance

12. Which of the following statements about the different valuation methods of inventory is false?

Question 12 options:

• FIFO reports a more accurate value of ending inventory than weighted average, as it is based on the most recent purchases.

• Specific identification provides the true value of ending inventory and COGS but it is costly to implement and therefore not practical for items of small value.

• Weighted-average method smooths out purchase price changes and is fairly simple to administer.

• When product cost decreases over the period, FIFO results in the highest value of ending inventory.

11. In 2019, Delta Products reported sales revenue of $1,000,000, cost of goods sold of $600,000, salaries expense of $80,000, total assets of $1,400,000. What was the gross profit margin for the year 2019?

Question 11 options:

• 60%

• 40%

• 30%

• 140%