Accounting Help

The collection of an account receivable generates cash, which implies an increase in assets

True 

False

Debt-to-Equity and Debt-to-Assets ratios indicate the relative liquidity of a company

True

False

If a company's retained earnings account has a credit (right-hand) balance, then the firm must have generated a profit during the period. 

True

False

Ratio analysis is one of the methods used in financial statement analysis

True 

False

The collection of an account receivable generates cash, but this does not imply an increase in assets

True

False

Economic events may or may not affect the financial position of a company

True

False

The statement of financial position shows how well a company has perfumed over a period of time

True

False

A company’s operating cycle is a measurement of the average length of the time of a sale to the collection of an account receivable. This measure is an important tool used in measuring operating efficiency and in forecasting the cash requirements of the firm.

True

False

Liabilites normally have a left-handed balance

True

False

Which organization is recognized today as the premier organization for academic accounts?

S.E.C.

A.I.C.P.A

F.A.S.B.

A.A.A.

The two major sections of the statement of cash flows are sources of cash and uses of cash

True

False

Which of the following would appear in the operating activities sections of a statement of cash flows prepared using the direct method, but not in one prepared using the indirect method.

A) Change in accounts receivable

B) Depreciation Expense

C) Cash paid to employees

D) Change in accounts payable

E) Change in retained earnings