QUESTION 5

1. A receipt of cash from a customer that has already been equally accrued on accounts receivable will:

   		Decrease the current ratio
   		Increase the current ratio
   		Current Ratio remains the same
   		What is the current ratio

5 points

QUESTION 6

1. Turnover ratios are generally calculated for each of the following assets except:

   		Accounts Recievable
   		Inventory
   		Cash
   		Plant and Equipment

5 points

QUESTION 7

1. A financial tool used to help determine profitability of individual products and help to improve decisions regarding those products is the breakeven analysis.

   True

   False

10 points

QUESTION 8

1. Corporation A had NET sales of $2,400 for the year, cost of goods sold of $800, and interest expense of $500 for last year.

   What is the Gross Profit if sales were $3,000 for the current year if the relationships remain the same?