5- The current retio measures a firm's

a) Profitability b) Ability to pay long--term liability c) Ability to pay shot-trem liability d) a,b and c

6- Which of the follwoing woulf NOT be classified as long-term asset?

a) Equipment b) Accounts Payable c) Automobiles d) Building

7- What is the going concern assumption?

a) Assumes that a company will go thae distance for their customers. b) Assumes company will go out of business for ten years c) Assumes that a company will follow proper accounting rules d) Assumes that the compeny will continue to operate indefinitely

8- A clssifed balance sheet

a) Does not balance b) Shows depits and Credits c) Arranges assets and liabilities by liquidity d) Lists all revenues and expenses.