All Else Being Equal, Which One of the Following Will

question 80

Multiple Choice

All else being equal, which one of the following will decrease a firm's current ratio?

• A) a decrease in the net fixed assets
• B) a decrease in depreciation
• C) an increase in accounts payable
• D) None of the above

Calculate gross profit using different inventory costing methods.

Understand the application of perpetual and periodic inventory systems.

Calculate inventory turnover and interpret its significance.

Derive cost of goods sold using various inventory methods.

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Definitions:

Medicare

A federal health insurance program in the United States for people who are 65 or older, certain younger people with disabilities, and people with End-Stage Renal Disease.

Payroll Tax

Taxes imposed on employers or employees, and are usually calculated as a percentage of the salaries that employers pay their staff.

Social Insurance Tax

Taxes imposed on employees and employers to fund public insurance programs, such as social security, health care, and unemployment benefits.

Social Security

Social Security is a government system that provides financial assistance to people with an inadequate or no income, primarily the elderly, disabled, and survivors.