Pinecrest Company Use the Selected Data from Pinecrest Company's Financial

question 12

Multiple Choice

Pinecrest Company Use the selected data from Pinecrest Company's financial statements to answer the following question.
Refer to the data for Pinecrest Company.
The current ratio for 2014 is

• A)0.60 to 1
• B)0.99 to 1
• C)1.34 to 1
• D)1.68 to 1

Analyze the factors influencing net exports and net capital outflow.

Explain the impact of international transactions on a country's net exports.

Determine the effect of currency exchanges and investment on net capital outflow.

Evaluate the relationship between a government's budget deficit and the country's trade balance.

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Definitions:

Liability

A financial obligation or amount owed by a business to creditors, typically reflected on the balance sheet.

Fiscal Year

A 12-month period used for accounting purposes and preparing financial statements, which may not coincide with the calendar year.

Supplies Account

An account used to track the cost of supplies bought and used by a business over a period.

Supplies Expense

Supplies expense refers to the cost of consumable supplies used during an accounting period, recognized as an expense on the income statement.