QUESTION 15

1. Refer to the following selected financial information from McCor, LLC.

   1	A	B
   2	Cash	$37,500
   3	Short-term investments	50,000
   4	Accounts receivable, net	21,000
   5	Inventory	43,560
   6	Supplies	5,500
   7	Plant assets	505,000
   8	Accounts Payable	110,000

   Using an Excel formula, how would you calculate the Acid-test ratio using the above cells?

   		=B8/B2
   		=SUM(B2:B6)/B8
   		=B8/SUM(B2:B7)
   		=SUM(B2:B4)/B8

2.5 points

QUESTION 16

1. To use Goal Seek you must have a target cell that contains a formula and another cell on which it depends.

   True

   False

2.5 points

QUESTION 17

1. A component of operating efficiency and profitability, calculated by expressing net income as a percent of net sales, is the:

   		Acid-test ratio.
   		Merchandise turnover.
   		Price earnings ratio.
   		Accounts receivable turnover.
   		Profit margin ratio.

2.5 points

QUESTION 18

1. The aging of accounts receivable involves classifying each account receivable by how long it is past its due date and estimating the percent of each uncollectible class.

   True

   False

2.5 points

QUESTION 19

1. Most firms will have some semivariable costs that are fixed over a certain range of output but will change if output rises above that level.

   True

   False

2.5 points

QUESTION 20

1. Equipment that was purchased for $300,000 5 years ago was just sold for its salvage value of $50,000. The journal entry to record the sale will include a:

   		debit to Accumulated Depreciation for $250,000
   		credit to Accumulated Depreciation for $250,000
   		debit to Cash for $50,000
   		credit to Equipment for $300,000