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indicate the effects of the transactions listed in the following table on total

ID: 2740955 • Letter: I

Question

indicate the effects of the transactions listed in the following table on total current assets, current ratios, and net income. Use (+) to indicate an increase, use (-) to indicate a decrease, and (0) to indicate either no effect or an indeterminate effect. Be prepared to state any necessary assumptions and assume an initial current ratio of more than 1.0.

                                                                                               

                 

Total Current Assets Current Ratio Effect on Net Income J) Short term notes receivable are sold at a discount K) Marketable securities are sold below cost M) Current operating expenses are paid P) A fully depreciated asset is retired Q) Accounts receivable are collected

Explanation / Answer

Total Current Assets Current Ratio Effect on Net Income J) Short term notes receivable are sold at a discount - - - K) Marketable securities are sold below cost - - - M) Current operating expenses are paid - - - P) A fully depreciated asset is retired 0 0 0 Q) Accounts receivable are collected 0 0 0