. The purchase of inventory for cash will cause the current ratio to decrease. (

Question

. The purchase of inventory for cash will cause the current ratio to decrease. (Points : 10)        True
       False Question 2.2. The current ratio is irrelevant in liquidity analysis for service companies because they do not have inventories among their current assets. (Points : 10)        True
       False Question 3.3. When cash is paid before an expense is incurred, an accrual is necessary. (Points : 10)        True
       False Question 4.4. The operating cycle for all businesses is one year. (Points : 10)        True
       False Question 5.5. When initially recording the cost of land purchased, most companies use the current value. (Points : 10)        True
       False Question 6.6. A T account for Cash cannot contain any credits. (Points : 10)        True
       False Question 7.7. Financial statements should be prepared before any adjustments are made. (Points : 10)        True
       False Question 8.8. Accumulated depreciation is increased when depreciation is recognized. (Points : 10)        True
       False Question 9.9. Accountants are the main reason financial statements are prepared. (Points : 10)        True
       False Question 10.10. A 12% change in sales will result in a 12% change in net income. (Points : 10)        True
       False . The purchase of inventory for cash will cause the current ratio to decrease. (Points : 10)        True
       False

Explanation / Answer

1.false

2.True

3.True

4.True

5.True

6.True

7.False

8.True

9.True

10.False

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