1. Which of the following is a formal written promise to pay a definite sum of money on demand or at a fixed or determinable future date?

Question options:

Notes Payable

Prepaid insurance policy

Accounts Receivable

2.Company X, Company Y, and Company Z all work in the same industry.What company could potentially have difficulty paying its short-term debt?

X

Y

Z

Current Assets

300

160

400

Current Liabilities

200

110

180

Current Ratios

1.50

1.45

2.22

Question options:

Company Y

Company Z

Company X

3.A creditor, such as a bank, would review a company's cash and other assets that can easily be converted into cash to determine its:

Question options:

Liquidity

Owner's equity

Solvency

4.Rodrigo has just opened a new business near campus that is a combination of a laundromat, a nail salon, and a tanning studio. At the end of the first quarter (three months of business), Rodrigo has several questions about how things are going. If he wants to understand how much money he has put into the business so far, then he should look at the ________ that her accountant has prepared.

Question options:

The Income Statement

The Statement of Owner's Equity

The Balance Sheet