Question 43

Q: When a company accepts returned merchandise that was purchased on account and not yet paid for, the journal entry will include a:

	A.	debit to sales returns and a credit to cash
	B.	debit to sales returns and a credit to accounts receivable
	C.	debit to accounts receivable and a credit to cash
	D.	debit to sales revenue and a credit to accounts receivable

1 points

Question 44

Q: The current ratio equation is:

	A.	Current assets / current liabilities
	B.	Current assets / Total assets
	C.	Current assets - current liabilities
	D.	(Current assets - current liabilities) / current assets

1 points

Question 45

Q: Just before the current quarter ends, a company's trial balance sheets current assets of $50,000 and current liabilities of $30,000. Before closing the books, management decides to use $10,000 cash to repay $10,000 of accounts payable that are due the next month. What is the company's current ratio AFTER that transaction?

	A.	1.67
	B.	2
	C.	0.67
	D.	1.33