The Data of Graham Brothers Company for Two Years Are

question 228

Multiple Choice

The data of Graham Brothers Company for two years are given below. $$\begin{array} { | l | r | r | } \hline & 2018 & 2019 \\\hline \text { Cash and cash } & & \\\text { equivalents } & \$ 5,300 & \$ 12,000 \\\hline \text { Total current liabilities } & 24,000 & 31,000 \\\hline\end{array}$$ 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 0.387 in 2018 to 0.221 in 2019.
• D) Cash ratio has increased from 0.221 in 2018 to 0.387 in 2019.

Apply attribution theory to explain everyday events and behaviors.

Understand the heuristic biases in social cognition.

Comprehend the impact of social context on attribution processes.

Understand the components and structure of a cash budget.

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Definitions:

Debits And Credits

The two sides of every financial transaction in double-entry bookkeeping; debits must equal credits for each entry to balance.

Alphabetic Order

A method of arranging items or information according to the sequence of the letters in the English alphabet.

Journal

A record where all financial transactions are initially noted in chronological order before being transferred to accounts in the ledger.

Transaction

A financial event or agreement that results in a change to the balance of two or more accounts within a company's financial records.