Questions 32-34: Accounts payable Accounts receivable Accrued liabilities Cash I
ID: 2332135 • Letter: Q
Question
Questions 32-34: Accounts payable Accounts receivable Accrued liabilities Cash Intangible assets Inventory Long-term investments Long-term liabilities Marketable securities Notes payable (short-term) Property, plant, and equipment Prepaid expenses s 40,000 65,000 7,000 30,000 40,000 72,000 110,000 75,000 36,000 30,000 625,000 2,000 32.Based on the above data, what is the amount of quick assets? a. $205,000 b. $203,000 C. $131,000 d. $66,000 33.Based on the above data, what is the amount of working capital? a. $238,000 b. $128,000 c. $168,000 d. $203,000 34 Based on the above data, what is the quick ratio, rounded to one decimal point? a. 2.7 b. 2.6 c. 1.7 d. 0.9 35.The independent auditor's report does which of the following? a. describes which financial statements are covered by the audit b. gives the auditor's opinion regarding the fairness of the financial statements c. summarizes what the auditor did d. states that the financial statements were presented on timeExplanation / Answer
Question 32
Correct answer---- (c )$131,000
Explanation
Quick asset includes Cash and cash equivalent, Accounts Receivables and Marketable securities.
Quick assets
Cash
$ 30,000.00
Accounts Receivables
$ 65,000.00
Marketable Securities
$ 36,000.00
Total Quick Assets
$ 131,000.00
Question 33
Correct Answer----(b) $ 128,000
Working Capital = Current Assets-Current Liabilities
Total Current Assets
Current Assets
Cash
$ 30,000.00
Accounts Receivables
$ 65,000.00
Marketable Securities
$ 36,000.00
Inventories
$ 72,000.00
Prepaid expenses
$ 2,000.00
Total Current Assets
$ 205,000.00
Current Liabilities
Accounts Payable
$ 40,000.00
Accrued Liabilities
$ 7,000.00
Notes payable (short term )
$ 30,000.00
Total Current Liabilities
$ 77,000.00
Working Capital = Current Assets-Current Liabilities
Working Capital = $ 205000-77000
Working Capital =$ 128,000
Question 34
Correct Answer---- (c ) 1.7
Quick ratio = Quick Asset/Current Liabilities
Quick ratio =($ 131,000/$ 77,000)
Quick ratio =1.7 times
Question 35
Correct Answer ----A,b and c
Explanation
Independent Auditor report describes the statements that are audited, the methods used by auditors (such as Auditing done in accordance with standards of the Public Company Accounting Oversight Board (United States) and other standards applicable) and provides an opinion about the fairness of the Financial statements.
Although It does not report on the timeliness of the report.
Quick assets
Cash
$ 30,000.00
Accounts Receivables
$ 65,000.00
Marketable Securities
$ 36,000.00
Total Quick Assets
$ 131,000.00
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