Accounting & Finance Test

When a bank's customer makes an ATM cash withdrawal from the customer's account, which classes of the bank's Chart of Accounts will be affected?

Where can information about the total interest accrued during the reporting period of one year be found?

Study the balance sheet information for Carlton Corporation in 2015 in the image below.

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What is the value of the Current Asset Turnover Ratio for Carlton Corporation in 2015?

(Round your answer to the nearest whole number.)

Study the balance sheet for Edampilz in 2017 in the image below.

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What is the value of the Debt Ratio for Edampilz in 2017?

(Round your answer to two decimal places.)

Read the statement below and fill in the blanks with the correct answers.

Liquidity ratios indicate an enterprise's ability to pay _________________________ while solvency ratios indicate an enterprise's ability to pay _________________________. If we see that the Quick Ratio is ____________________ over time and the Current Liquidity Ratio is ____________________ over time, we can conclude that the company’s ability to pay short-term debt is probably improving.

DEF Limited, a company that specializes in high-end audio components, is planning to expand into a new market by investing in a new production line. That investment consists of $100,000 received from a five-year loan and $50,000 of DEF’s own cash. DEF’s management has decided to use the straight-line depreciation method over a 10-year period, and the salvage (residual) value of the production line is zero.

What is the increase to DEF’s fixed assets when the production line is put into operation?

(Round your answer to whole dollars.)

Your company just purchased a company vehicle with cash.