Blue Co. has current assets of USD130 million, current liabilities of USD50 million, and equity of USD30 million. The current ratio for the company's peer group is 2.5. Which of the following statements is correct regarding Blue's current ratio?
参考答案(由小熊题库网聘请的专业题库老师提供的解答)
请点击↑↑↑ 查看官方参考答案 按钮
习题解析
请点击 查看官方参考答案 按钮
您可能感兴趣的题目
1 .Which of the following statements concerning an auditor's communication of significant deficiencies identified during the financial statement audit of a nonissuer is correct?
A Any report issued on significant deficiencies should indicate that providing assurance on internal control was not the purpose of the audit. B Significant deficiencies discovered and communicated at an interim date should be reexamined with tests of controls before completing the engagement. C The...
2 .The CFO of a company is concerned about the company's accounts receivable turnover ratio. The company currently offers customers terms of 3/10, net 30. Which of the following strategies would most likely improve the company's accounts receivable turnover ratio?
A Changing customer terms to 1/10, net 30. B Pledging the accounts receivable to a finance company. C Entering into a factoring agreement with a finance company. D Changing customer terms to 3/20, net 30.
3 .Snow, CPA, was engaged by Master Co., a nonissuer, to examine and report on management's written assertion about the effectiveness of Master's internal control over financial reporting. Snow's report should state that:
A Management's assertion is based on criteria established by the American Institute of Certified Public Accountants. B The results of Snow's tests of controls will form the basis for Snow's opinion on the fairness of Master's financial statements in conformity with GAAP. C Because of its inherent li...
4 .Farrow Co. is applying for a loan in which the bank requires a quick ratio of at least 1. Farrow's quick ratio is 0.8. Which of the following actions would increase Farrow's quick ratio?
A Purchasing inventory through the issuance of a long-term note. B Selling obsolete inventory at a loss. C Implementing stronger procedures to collect accounts receivable at a faster rate. D Paying an existing account payable.
5 .Which of the following matters is an auditor required to communicate to those charged with governance?
A The results of the auditor's analytical procedures performed in the review stage of the engagement that indicate significant variances from expected amounts. B Changes in the auditor's preliminary judgment about materiality that were caused by projecting the results of statistical sampling for tes...
7 .According to the profession's ethical standards, an auditor would be considered independent in which of the following instances?
A The client is the only tenant in a commercial building owned by the auditor. B The auditor is the officially appointed stock transfer agent of a client. C The client owes the auditor fees for more than two years prior to the issuance of the audit report. D The auditor's checking account that is fu...
8 .A report that does not currently exist but that needs to be created on demand without having to get a software developer involved is known as a/an:
A Scheduled report. B Exception report. C Ad hoc report. D Demand report.
9 .Kar, CPA, is a staff auditor participating in the audit engagement of Fort, Inc. Which of the following circumstances impairs Kar's independence?
A Kar's friend, an employee of another local accounting firm, prepares Fort's tax returns. B Kar owns stock in a corporation that Fort's 401(k) plan also invests in. C During the period of the professional engagement, Fort gives Kar tickets to a football game worth $75. D Kar's sibling is an interna...
10 .Which of the following is an open, royalty free standard that can be used to facilitate data aggregation, transfer, and connectivity between disparate or stand-alone systems?
A Linux. B XBRL. C CAT5. D HTTP.
