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Question
At the end of the current year, Norman Company reported total liabilities of $300,000 and total equity of $100,000. The company's debt ratio on the last year-end was:A.300%.
B.33.3%
C.75.0%.
D.$400,000.
E.Cannot be determined from the information provided.
Answer
This answer is hidden. It contains 165 characters.
Related questions
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Which of the following statements is incorrect?
A.Adjustments to prepaid expenses, depreciation, and unearned revenues involve previously recorded assets and liabilities.
B.Accrued expenses and accrued revenues involve assets and liabilities that had not previously been recorded.
C.Adjusting entries can be used to record both accrued expenses and accrued revenues.
D.Prepaid expenses, depreciation, and unearned revenues often require adjusting entries to record the effects of the passage of time.
E.Adjusting entries affect the cash account.
Q:
Adjusting entries are journal entries made at the end of an accounting period for the purpose of:
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B.Assigning revenues to the periods in which they are earned.
C.Assigning expenses to the periods in which they are incurred.
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Q:
Inventory shrinkage:
A.Refers to the loss of inventory.
B.Is determined by comparing a physical count of inventory with recorded inventory amounts.
C.Is recognized by debiting Cost of Goods Sold.
D.Can be caused by theft or deterioration.
E.All of these.
Q:
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Q:
Merchandise inventory:
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Q:
Generally accepted accounting principles require companies to use one specific format for the financial statements.
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Q:
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D.By using a work sheet to prepare adjusting entries you need not post these entries to the ledger accounts.
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Q:
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The work sheet is a required financial statement.
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Q:
Another name for temporary accounts is:
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E.Nominal accounts.
Q:
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Q:
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Which of the following groups of accounts are not balance sheet accounts?
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B.Liabilities.
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Q:
Which of the following statements describing the debt ratio is false?
A.It is of use to both internal and external users of accounting information.
B.A relatively high ratio is always desirable.
C.The dividing line for a high and low ratio varies from industry to industry.
D.Many factors such as a company's age, stability, profitability and cash flow influence the determination of what would be interpreted as a high versus a low ratio.
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Q:
The debt ratio is used:
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B.To reflect the risk associated with a company's debts.
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E.All of these.
Q:
It is not necessary to keep separate accounts for all items of importance for business decisions.
Q:
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