Questions from Accounting Principles

Q: What are three factors that would influence your decision as to whether

What are three factors that would influence your decision as to whether a company’s current ratio is good or bad?

Q: Suggest several reasons why a 2 to 1 current ratio may not

Suggest several reasons why a 2 to 1 current ratio may not be adequate for a particular company.

Q: RangeStar Telecommunications recently acquired a patent regarding a new telecommunications application.

RangeStar Telecommunications recently acquired a patent regarding a new telecommunications application. Additional equipment and a computer were purchased to begin making the application available to...

Q: Which assets are included in calculating the quick ratio?

Which assets are included in calculating the quick ratio?

Q: Which two short-term liquidity ratios measure how frequently a company

Which two short-term liquidity ratios measure how frequently a company collects its accounts?

Q: Which two terms are used to describe the difference between current assets

Which two terms are used to describe the difference between current assets and current liabilities?

Q: Does the balance of the Accumulated Depreciation, Machinery account represent funds

Does the balance of the Accumulated Depreciation, Machinery account represent funds accumulated to replace the machinery when it wears out?

Q: What is the difference in profit between a repairs and maintenance expense

What is the difference in profit between a repairs and maintenance expense and a betterment, and how is each recorded?

Q: What accounting principle justifies charging the $75 cost of PPE immediately

What accounting principle justifies charging the $75 cost of PPE immediately to an expense account?

Q: Refer to the statements of cash flows for Spin Master. What

Refer to the statements of cash flows for Spin Master. What was the amount of depreciation and amortization for 2016 and 2017? Where will you look to find the explanation of the increase?