Assuming a current ratio of 1.0 and an acid-test ratio of 0.80, how will the borrowin
Assuming a current ratio of 1.0 and an acid-test ratio of 0.80, how will the borrowing of cash by issuing a six-month note payable affect each ratio?
Decrease the current ratio and decrease the acid-test ratio.
Increase the current ratio and increase the acid-test ratio.
No change to the current ratio and increase the acid-test ratio.
Decrease the current ratio and increase the acid-test ratio.
Region Jet has a $50 million liability at December 31, 2012, of which $10 million is
Region Jet has a $50 million liability at December 31, 2012, of which $10 million is payable in 2013. In its December 31, 2012 balance sheet, the company reports the $50 million debt as
A $10 million current liability and a $40 million long-term liability on the balance
Sheet.
A $50 million long-term liability on the balance sheet.
A $50 million current liability on the balance sheet.
A $40 million current liability and a $10 million long-term liability on the balance sheet.