91) Financing expenses are typically classified as an operating expense.
92) The days sales in receivables ratio is computed as average net accounts receivable divided by 365 days.
93) The current ratio is calculated by taking the total of all current assets except inventory divided by the total of all current liabilities.
94) A decrease in the acid-test ratio from one year to the next indicates the company's liquidity position is likely improving.
95) An increase in the acid-test ratio from one year to the next indicates the company's liquidity position is likely improving.
96) The quick ratio helps investors measure the organization's liquidity.
97) The acid test ideal ratio is 2.0.
98) The acceptable acid-test ratio varies by industry.
99) Generally, the higher the acid-test ratio the easier it is for an organization to pay its current liabilities.
100) What are 'trading investments'?
101) Vance Corporation purchases UXB shares on May 10 for $120,000. On October 15th Vance receives a cash dividend of $1,200 from UXB. On December 31st the value of Vance Corporation's investment in UXB has increased in value to $150,000.
Prepare journal entries needed on May 10, October 15, and December 31, 2010
102) January 1, 2010 Orange Tree Spa invests in $100,000 worth of Apple Spa shares to hold as a short term investment. On December 31, 2010, this investment now has a market value of $105,000.
On May 1, 2011 Orange Tree Spa sells their Apple Spa shares for $95,000. Prepare the required entries for Orange Tree Spa.