Current Assets & Liabilities

Question 1

Cash plus other assets that are expected to be sold or converted to cash during the current operating cycle

Includes: Demand deposits, cash equivalents, accounts receivable, inventory, pre-paids, and short-term investments

Answer 1

Current Assets & Liabilities

Question 2

A liability expected to be paid within 12 months or less

Answer 2

Current Assets & Liabilities

Question 3

(Cash + A/R + Trading Securities) / Current Liabilities

Answer 3

Current Assets & Liabilities

Question 4

Currents Assets / Current Liabilities

Answer 4

Current Assets & Liabilities

Question 5

Currents Assets - Current Liabilities

Answer 5

Current Assets & Liabilities

Question 6

Credit Sales / Average A/R

Answer 6

Current Assets & Liabilities

Question 7

COGS / Average Inventory

Answer 7

Current Assets & Liabilities

Question 8

365 / Inventory Turnover

Answer 8

Current Assets & Liabilities

Question 9

Average A/R / Average Sales per Day

Answer 9

Current Assets & Liabilities

Question 10

They are NOT accrued due to Conservatism

Answer 10

Current Assets & Liabilities

Question 11

If Probable - they are accrued (if estimable) and disclosed

If Reasonably Possible - they are disclosed

If Remote - don’t accrue or disclose

Answer 11

Current Assets & Liabilities