Post ACC305 Assignment Unit 4 Ch 6 quiz and self quiz

| June 12, 2016

Question
• Question 1

0 out of 0 points

A firm that has been on lifo for many years may have some inventory costs that go back ten years or more.

True

False

• Question 2

0 out of 0 points

The operating cycle is the time between the acquisition of inventory and the realization of cash from selling the inventory.

True

False

• Question 3

0 out of 0 points

To qualify as a marketable security, the investment must be readily marketable and it must be the intent of management to convert the investment to cash within the current operating cycle or a year, whichever is longer.

True

False

• Question 4

0 out of 0 points

Long term assets are assets that are in the form of cash or that will be realized in cash or that conserve the use of cash within the operating cycle of a business, or one year, whichever is the longer period of time.

True

False

Response Feedback: This defines current assets.

• Question 5

0 out of 0 points

Current liabilities are obligations whose liquidation is reasonably expected to require the use of existing current assets or the creation of other current liabilities within a year or an operating cycle, whichever is longer.

True

False

• Question 1

Match the ratio with the formula.

Question Correct Match Selected Match

Sales

Average Working Capital

Net Sales

Average Gross Receivable

Current Assets – Current Liabilities

Cash Equivalents + Marketable Securities + Net Receivables

Gross Receivables

Net Sales/365

.

Average Gross Receivables

Net Sales/365

Average Inventory

Cost of Goods Sold/365

Cash Equivalents + Marketable Securities

Current Liabilities

Current Assets

Current Liabilities

Accounts Receivable + Inventory Turnover

Turnover in Days in Days

Cost of Goods Sold

Average Inventory

.

Ending Inventory

Cost of Goods Sold/365

All Answer Choices

A.

days’ sales in receivables

B.

accounts receivable turnover

C.

accounts receivable turnover in days

D.

days’ sales in inventory

E.

inventory turnover

F.

inventory turnover in days

G.

operating cycle

H.

working capital

I.

current ratio

J.

acid-test ratio

K.

cash ratio

L.

sales to working capital

Friday, July 10, 2015 3:23:15 AM EDT

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