Indicate the effets of the transactions listed in the following table on total c

Question

Indicate the effets of the transactions listed in the following table on total current assets, current ratio and net income. I need to know if it increases (+), decreases (-) or no effect to any of those three. a. Cash is obtained through short term bank loans b. marketable securities are sold below cost c.advances are made to employees d. current operating expenses are paid e. short term promissory notes are issued to trade creditors in exchange for past due accounts payable f.a fully depreciated asset is retired g. accounts receivable are collected h. merchandise is purchased on credit Rememeber I need what affect to which category of the 3 listed!

Explanation / Answer

Hi, Please find the answers as follows: a. Cash is obtained through short term bank loans = +, -, 0 b. marketable securities are sold below cost = -,-,0 c.advances are made to employees = 0,0,0 d. current operating expenses are paid = -,-,- e. short term promissory notes are issued to trade creditors in exchange for past due accounts payable = 0,0,0 f.a fully depreciated asset is retired = 0,0,0 g. accounts receivable are collected= 0,0,0 h. merchandise is purchased on credit = +,-,0 Thanks

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