1)choose the best answer

4, The relationship of current assets to current liabilities s used to evaluate a firm's a. Profitability b. Income producing ability c. Long range solvency d. Short term debt paying ability 5. When an interest bearing note payable matures, the amount repaid is a. The face value of the note plus the interest accrued b. The difference between the maturity value of the nate and the face value c. The face value of the note d. The face value of the note less the interest accrued 6. This is a statement issued by the bank to explain why there is a deduction in the depositors accoun a. Bank statement b. Bank reconciliation statement c. Bank debit memo d, Bank credit memo 7, Acheck issued to a payee which has been presented for encashment to the bank against which it has been drawn a. Certified check outstanding check b. NSF check d, cashier's check 8, Deposits made and recorded by the company in one period and recorded by the bank In a succeeding period a. Transfer bank account b, Deposit in transit c, Time deposit d. Deposit slip 9. A furniture store debits purchases for a purchase of a. A cash register b. A freezer c. A set of pencils d. beds 10, Internal control is used in a business to enhance the accuracy and reliability of its accounting records and to a. Safeguard its assets b. Prevent fraud c. Produce correct financial statements d. Deter employee dishonesty 11. Ruth store purchased goods worth P150,000. Half of which were sold at a mark-up of 40%, Gross profit amounted to a. P60, 000 c, P75,000 b, P30,000 d, P45,000 12. Alexis, a footwear distributor, returned furniture worth P1,000. He should a. Debit sales returns c debit furniture br Credit purchase returns d, credit fumiture 13. Net sales amounted to Pso, ooo with cost of sales representing 75%. If operating expenses is 10% of sales, net income will be P17,500 b, P12, 500 d. P7.500