1.Liquidity reflects the ability of the firm to meet its obligations as they come due in the short term while solvency reflects the ability of the firm to meet its obligations as they come due in the long term.

Question 1 options:

	True
	False

2.United Grocers of America recorded $600,000 in sales revenue during the period. An intern analyzed changes in balance sheet accounts during the period and brought the following information: accounts receivable increased $80,000; accounts payable decreased $50,000; customer deposit liabilities increased $60,000; accumulated depreciation increased $30,000; cash decreased $20,000. How much cash was collected from customers during the period?

Question 3 options:

$600,000

$580,000

Some other amount

$520,000

$620,000

3.suppliers of merchandise rose by $30,000, and inventory of merchandise rose by $20,000. The company sold land costing $100,000 for $110,000. The amount of cash paid to suppliers of merchandise during 2009 was:

Question 4 options:

	$470,000
	$430,000
	$480,000
	$490,000