(C) Current ratio compares the current liabilities that will become liquid at a period of 12 months with the current liabilities that will be paid at the same period [ CITATION Hri04 l 1033 ].
(B) Accounts receivable less the allowance for doubtful debt will be equal to credit to allowance for doubtful debt.
(C) ROA= Total Net Income/ Total Assets x 100.
(A) Bonds can be issued at a fixed rate of interest which is known as coupon rate until it matures. The selling of bonds at a secondary market will be affected by the current interest rate ant the length of time of its maturity.
(D) Interest is the annual percentage of the outstanding loan.
(A) I= P x R x T Where: p is the principle, r is the rate in percentage and t is the time.
(B) Contingent liability is the potentiality of an event happening or not happening in the future.
(A) I= P x R x T
(A) Capital lease is the lease where the lesser provides finances of the asset and the lessee has all the rights towards the asset.
(D) Classified loans have interest that has not been paid.
(B) Maturity date is the date in which the principle amount becomes due and is paid back to the person who gave the loan and the interest provided stops.
(A) This will be based on the fact that one is adhering and accepting the facts, where everyone is in concurrence.
(A) Allowance method is one way in which a company derives an estimated value of bad debts.
(B) Carrying amount is also known as the book value. It is the amount in the company’s book as assets or liabilities.
(B)Bank reconciliation is prepared to prove that differences can be made to agree with each other. That is in the cash book and the bank account
(A) Remittance advice is a letter from the customer to the supplier to inform them that the invoice provided to them by the supplier has been paid.
(B) Debit cash, debit discount on bonds payable and credit bonds payable.
(B) Assets are properties owned by the business. They can be items that can be touched and seen, these are the tangible assets.
(D)In double entry, credit is obtained when there is a decrease in assets increase in liability or increase in capital.
(B) Controller ensures that the financial statements are accurate and timely.
Bhattacharya, Hrishikesh. Working Capital Management: Strategies and Techniques. New Delhi: PHI Learning Pvt. Ltd, 2004.