Which of the following situation will not likely result in an end of the period adjustment? Multiple Choice Asset purchased in advance of the use of this asset in operations. A bill is received for expenses for the current month and is due next month. Cash is received in advance of a delivery of a good or service Expenses are incurred and paid for in the current month What is the effect on the financial statements when a company fails to adjust the deferred revenue account for revenues earned at year-end that were pre-paid? Multiple Choice Revenues are understated and liabilities are understated. Net income is understated and assets are understated Net income is understated and liabilities are overstated. Revenues are understated and stockholders' equity is overstated. On December 31, 2020 a corporation reports a liability that totals $8 million $3 million is payable in 2021 and the remainder is payable in 2022. When prepares its balance sheet for the year-end 2020, it will report a: Multiple Choice $5 million current liability $8 million current liability $3 million current liability 50 current liability Which of the following ratios is most useful in evaluating liquidity? Multiple Choice Return on assets, Return on equity Debt to equity ratio. Current ratio. Which of the following is a sign that a company can quickly turn its receivables into cash? Multiple Choice A low receivables turnover ratio. A high receivables turnover ratio A high average collection period. Both a low receivables turnover ratio and a high average collection period