33、Assume U.S. GAAP (generally accepted accounting principles) applies unless; otherwise noted.

A company accrued wages of $2,000 and collected accounts receivable of $10,000. What are the most likely effects of these two transactions on the company's current ratio and cash flow from operations, respectively?

A. Answer A

B. Answer B

C. Answer C

D. Answer D

[此贴子已经被作者于2008-11-7 14:19:09编辑过]

33、Assume U.S. GAAP (generally accepted accounting principles) applies unless; otherwise noted.

A company accrued wages of $2,000 and collected accounts receivable of $10,000. What are the most likely effects of these two transactions on the company's current ratio and cash flow from operations, respectively?

A. Answer A

B. Answer B

C. Answer C

D. Answer D

  
Correct answer = C

"Understanding the Cash Flow Statement," Thomas R. Robinson, Hennie van Greuning, Elaine Henry, and Michael A. Broihahn
2008 Modular Level I, Vol. 3, pp. 267-270, 276-277
"Financial Analysis Techniques," Thomas R. Robinson, Hennie van Greuning, Elaine Henry, and Michael A. Broihahn
2008 Modular Level I, Vol. 3, p. 591
Study Sessions 8-34-h, 10-41-d
analyze and interpret a cash flow statement using both total currency amounts and common-size cash flow statements;
calculate and interpret activity, liquidity, solvency, profitability, and valuation ratios
Accruing wages increases current liabilities, but collecting receivables has no effect on current assets; the current ratio decreases. Collecting accounts receivable increases cash flow from operations and accruing wages increases current liabilities, which also increases cash flow from operations. 

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