is those correct and how?

2. Most Company has a current ratio of 2.5. What will be the effect of a purchase of inventory with cash on the acid-test satio and on working capital? ACID-TEST RATIO WORKING CAPITAL Decrease Decrease b. Decrease No Effect No Effect Decrease d. No Effect No Effect a. * c 3. a. b. Which of the following is the most likely cause of positive financial leverage in a company? Return on Equity in excess of Return on Assets. Return on Assets in excess of Return on Equity. An increase in the company's rate of borrowing. Return on Assets in excess of the company's average cost of capital. None of the above. c. d. e. Wadde. Company uses direct labor cost as a basis for computing its predetermined overhead rate. In computing the predetermined overhead rate for last year, the company misclassified a portion of direct labor cost as indirect labor. The effect of this misclassification will be to: understate the predetermined overhead sate. overstate the predetermined overhead rate. have no effect on the predetermined overhead rate. d. cannot be determined from the information given. a. b. c. . 5. a. b. On the Schedule of Cost of Goods Manufactured the final cost of Goods Manufactured amount represents: the total cost of goods completed during the current period, including any started before the current period. the total amount of direct materials, direct labos, and manufacturing overhead incurred during the current period. the total amount of costs transferred from Finished Goods to Cost of Goods Sold during the period. all manufacturing-related costs placed into production during the period. c. d