Reference no: EM132588144

Problem 1: Under which of the following accounting methods are net income and net cash flows from operating activities equal?

a. The cash basis of accounting

b. The hybrid system of accounting

c. Single entry accounting

d. The accrual basis of accounting

Problem 2: Which of the following is true of the quick ratio of a company?

a. The quick ratio is a better metric than quick assets for comparing among companies.

b. The quick ratio is computed as current assets divided by noncurrent liabilities.

c. The quick ratio is computed as current assets divided by quick assets.

d. The quick ratio is used to assess the company's ability to generate earnings.

Problem 3: When an asset is pledged as security for a long-term liability, the obligation may be called:

a. deferred credit.

b. unearned revenue.

c. an unsecured loan.

d. a mortgage payable.