Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Company Ahas total current abilities equal to $500,000, and working capital of $20,000 Company B has the same amount of working capital, but has total

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Company Ahas total current abilities equal to $500,000, and working capital of $20,000 Company B has the same amount of working capital, but has total current fatilities of $30,000. Which of the following statements is true about the companies' working capital positions? O A Company Ahas the better working capital position OB. They both have exactly the same working capital position Oc Company has the better working capital position OD. No comparison is possible Which of the following ratios is considered a measure of a company's ability to pay current liabilities? O A. acid-test ratio O B. price/earings ratio O C. debt ratio OD. times-interest-earned ratio Big Corporation paid 595.000 to acquire investment in the common shares of Little Corporation on January 3, 2020 on December 31, 2020. Le Corporation's net income was 1210.000 and Le Corporation paldidende of $80.000. On December 31, 2021 Le Corporation's net income was $170.000 and Little Corporation paid dividends of 000 Big Corporation used the equity-method to account for this investment Big Corporation sets 50% of its shares of Uime Corporation for 577.000 on January 3, 2022. This would result in a O Again on sale of investment of 54.000 OB gain on sale of investment of 56 500 OC gain on sale of investment of 590,000 O D. loss on sale of investment of $6.500 When an investor owns more than 50% of the voting shares of an investee, the investee is referred to as O A. a subsidiary OB. an affiliated company O C. a consolidated entity OD. a trust

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Medical Audit In Primary Health Care

Authors: Martin Lawrence, Theo Schofield

1st Edition

0192622676, 978-0192622679

More Books

Students also viewed these Accounting questions