Which method accounting is most rarely used due to the limited information it pr

Question

Which method accounting is most rarely used due to the limited information it provides? O a. Accrual O b. Modified Cash OC.Modified Accrual o d. Cash QUESTION 11 4 point A current ratio is a ratio in the class of O a liquidity ratios b. common size ratios Oc. efficiency ratios d. leverage ratios QUESTION 12 4 points Which is not a characteristic of ratio analysis? O a. Ratio analysis requires a mosaic approach O b. Although all ratios contribute information, the key class of ratios is the Efficiency Ratios OC. Ratios are often generated by using audited numbers under potentially different accounting assumptions For example the accounting for inventory flows. d. Many ratios have desired ranges of values rather than a specific desired value

Explanation / Answer

1- Answer is D

cash basis of accounting because it provides information related to cash transaction only and ignores the credit transaction

2- Answer is A

Liquidity Ratio

current ratio measures the short term solvency of the company

3- Answer is B

all ratios are equally important and they provide information on different financial variables and their relationship

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