Question 13 (1 point) A solvent company is unable to pay its bills. a) True b) False Question 14 (1 point) Total assets are used as the base of comparison for common-size statements for the balance sheet a) True b) False Question 15 (1 point) The balance as per the bank is $562.50, the outstanding deposits are $175.00 and the outstanding cheques are $200.00. The adjusted balance as per the bank is $887.50. a) True b) False Question 16 (1 point) The Dog Groomer is a family-owned business that grooms dogs. Many of the customers pay by cash. On Mondays, the family uses Joseph, a part-time employee, to work the store. Since the store is not busy on Mondays, Joseph is able to manage grooming the dogs, collecting the payments by himself, and maintaining the accounting records. Identify the weakness in internal controls. a) Rotating staff and mandatory vacations. Ob) Custody of assets should be separate from the accounting of assets. c) Responsibilities should be clearly assigned. d) Assets should be kept in a safe place. Question 17 (1 point) 1. An investor has found the following rates of return. i Stocks 13.1% i Bank deposits 8.2% i Bonds 10.40% i The Green Co 15.7% Based on the information above, the best rate of return is on bank deposits. a) True b) False Question 18 (1 point) Lenders would be interested in the current ratio as it is an indicator of the company's ability to pay its debts as they come due. a) True Ob) False Question 19 (1 point) Sales Cost of Goods Sold Gross Profit Operating Expenses Net Income 200,000 76,000 124,000 75,000 49,000 Based on the following information, what is the common-size calculation for the shaded cell? a) Net income is 6.4%. b) Net income is 39.5%. c) Net income is 65.3% Od) Net income is 24.5%