Question Details

The most important information needed to determine 


1.	The operating cycle of a company is the average time that is required to go from cash to
a.	sales in producing revenues.
b.	cash in producing revenues.
c.	inventory in producing revenues.
d.	accounts receivable in producing revenues.

	2.	On a classified statement of financial position, current assets are customarily listed
a.	in alphabetical order.
b.	with the largest dollar amounts first.
c.	in the reverse order of liquidity.
d.	in the order of acquisition.

	3.	Intangible assets are
a.	listed under current assets on the statement of financial position.
b.	not listed on the statement of financial position because they do not have physical substance.
c.	noncurrent resources.
d.	listed as a long-term investment on the statement of financial position.

4.	The relationship between current assets and current liabilities is important in evaluating a company's
a.	profitability.
b.	liquidity.
c.	market value.
d.	accounting cycle.

	5.	The most important information needed to determine if companies can pay their current obligations is the
a.	net income for this year.
b.	projected net income for next year.
c.	relationship between current assets and current liabilities.
d.	relationship between short-term and N  on-current liabilities.



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