NWC quiz 2

Which of the following amounts will be used in both the calculation of the current ratio and the quick ratio?

Which of the following is another name for the quick ratio?

Which is a better indicator of a company's liquidity?

Which of the following will indicate the specific accounts receivable that have not been collected?

Which of the following uses amounts from more than one financial statement?

A company received a $5,000 invoice for consulting services it had received. The company chooses to use its business credit card instead of paying cash. Under the accrual method of accounting, will the use of the credit card result in the company having more working capital?

The section of the statement of cash flows that shows the adjustments to most of a company's working capital accounts is the cash flows from __________ activities.

Current assets, which represent the portion of investment that circulates from one form to another in the ordinary conduct of business

The time from the beginning of the production process to collection of cash from the sale of the finished product.

The firm's minimum requirements for extending credit to a customer.