The Data of Graham Brothers Corp

question 251

Multiple Choice

The data of Graham Brothers Corp.for two years are given below.

Based on the above information,which of the following statements is true?

• A)Cash ratio has increased from 0.02 in 2018 to 0.03 in 2019.
• B)Cash ratio has increased from 0.05 in 2018 to 0.08 in 2019.
• C)Cash ratio has increased from 0.356 in 2018 to 0.238 in 2019.
• D)Cash ratio has increased from 0.238 in 2018 to 0.356 in 2019.

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Definitions:

Direct Labor-Hours

All the hours contributed by workers directly participating in creating products.

Activity Cost Pools

Aggregations of overhead costs attributed to distinct activities, used in activity-based costing to assign costs more precisely to products or services.

Activity-Based Costing

An accounting method that assigns costs to products or services based on the activities and resources that go into producing them.

Direct Materials Cost

The cost of raw materials and components that are directly traceable to the production of goods.