QUESTION 1

Prepaid Services is an example of

An asset created by an accrual.

An asset created by a deferral.

A liability created by a deferral.

A liability created by an accrual

QUESTION 2

The Debt to Equity Ratio relates to:

A more stringent ability to calculate liquidity

The payment of debt's principals.

The interest payments associated with debt

The ability to meet short-term obligations

QUESTION 3

Temporary accounts include:

Cash Inflows and Outflows to be displayed in the Statement of Cash Flows.

Revenues and expenses to be displayed in the Income Statement.

Assets, Liabilities, and Equity accounts to be displayed in the Balance Sheet.

Dividends and changes in stock to be displayed in the Statement of Shareholders' Equity.

Q4

Company X has the following balance sheet information:

Total Assets $1,000,000

Noncurrent Liabilities $150,000

Shareholders Equity $350,000

Current Ratio 0.80

What is Company Xs total current assets on its balance sheet?

$800,000

$400,000

$520,000

$440,000