101 which of the following transactions decreases the earnings quality ratio a the a 4314052

101 which of the following transactions decreases the earnings quality ratio a the a 4314052

101.Which of the following transactions decreases the earnings quality ratio?

A. The accrual of interest expense.

B. Collecting cash on an account receivable.

C. Selling inventory on account for a profit.

D. Making a payment of principal on a loan.

102.The year-end adjusting entry to record bad debt expense will increase which of the following ratios?

A. Current.

B. Earnings quality.

C. Quick.

D. Net profit margin.

103.The year-end adjusting entry to adjust the unearned revenue account for revenue earned decreases which of the following ratios?

A. Current.

B. Debt-to-equity.

C. Quick.

D. Net profit margin.

104.Which of the following ratios are not affected by issuing long-term bonds payable in exchange for cash? 

A. Debt-to-equity.

B. Current.

C. Cash Ratio.

D. Earnings quality.

105.The journal entry to record depreciation expense decreases which of the following ratios? 

A. Debt-to-equity.

B. Earnings per share.

C. Fixed asset turnover.

D. Earnings quality.

106.The cash payment of a previously declared dividend increases which of the following ratios?

A. Debt-to-equity.

B. Earnings per share.

C. Price/earnings ratio.

D. Total asset turnover.

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