Question

45) Based on the following information from Schutte Company's balance sheet, calculate the current ratio. Current assets Investments Plant assets Current liabilities Long-term liabilities A. Schrute, Capital $ 87,000 50,000 220,000 39,000 90,000 228,000 A) $0.44 to $1.00 B) $3.51 to $1.00 C) $3.33 : $2.00 D) 1.06: $1.00 E) $2.23 : $1.00 F) $2.23 to $2.00 46) Write out the words for the abbreviation CPA: 47) Where does US GAAP come from: 48) The Father of Accounting is generally considered to be: a. Luke Skywalker b. Marcus Lucas C. T. Lucas Leonard d. Luca Pacioli e. Leonardo da Vinci 49) Which is a true statement a. Debit to the right / Credit to the left b. Debits increase all accounts c. Debits decrease all accounts d. Debits increase all Liability accounts e. Credits increase all asset accounts f. Journal entries do not have to balance Debits & Credits g. All the above h. None of the above 50) What is Working Capital?

Answer 1

Solution:

45

$2.23 : $1

Explanation:

Current ratio = Current assets / current liabilties = 87000 / 39000 = 2.2307 = 2.23

46

CPA: The abbreviation of CPA is a certified public accountant is a designation given by the american institute of certified public accountants(AICPA) to individuals that pass the uniform CPA examination and meet the education and experience requirements. This CPA designation helps to develop professional standards in accounting Industry.

47.

US GAAP : US GAAP (Generally accepted accounting principles) is developed jointly by the financial accounting standards boards and the Governmental accounting standards Board(GASB), so they are applied to governmental and non profit accounting as well. It refer to a common set of accounting principles, standards, and procedures issued by the finanical accounting standards Board.

48.

LUCA PACIOLI

49.

h. None of above

Explanation:

a. Debit to the left and credit to the right

b. Debits does not increase all accounts . Debit increases assets and Expenses and losses

c. Debits does not decrease all accounts, Debit decreases Liabilities and Income and gains.

d. Debit does not increase all liability account. It increases assets

e. Credit does not increase all assets accounts. It increases liabilities

f. Journal entries have to balances debit and credit

50.

Working capital:

Working capital means which is used in its day to day trading operations covering inventory, accounts payable, accounts receivable and short term debt that is due. It is  calculated as the current assets minus current liabilities. It is also net working capital..