ACCOUNTING. CHOOSE THE BEST ANSWER (EXPLANATION NEEDED).

7) The activity that offers the best measure of the company's ability to keep running is: a) Operational b) Investing c) Financing d) It differs every year. 8) The shareholder is interested in the company having the ability to: a) Pay dividends b) Increase the value of their shares. c) Continue operating for a long period of time. d) All of the above. 9) The Liquidity Ratio measures: a) The income or operational success of a company for a period of time. b) The ability of the company to continue operating for a long period of time. c) The ability of the company to pay its short-term debts and defray unforeseen expenses. d) The number of times interest is earned. 10) The Current Ratio: a) It is calculated by dividing the Current Liabilities by the Current Assets. b) It is used to evaluate the liquidity of a company and its ability to pay its debts in the short term. c) It is used to evaluate the solvency of the company and its ability to pay its debts in the short term. d) It is calculated by subtracting current liabilities from current assets. 11) The acid test ratio. a) It is used to quickly determine the creditworthiness of a company and its ability to pay its long-term debts. b) Relates Cash, Marketable Securities and Net Account Receivables with Current Liabilities. c) It is calculated using one item from the Income Statement and one from the Cash Flow Statement. d) It is the same as the Current Ratio except that the percentage is rounded. 12) The following statement is true regarding Segregation of Duties: ) Responsibility for related activities should be assigned to different people, b) The responsibility for accounting for an asset should not be assigned to the same person who is guarding it. c) The (a) and (b) d) None of the above