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Flo’s Flowers’ current ratio is 1.3. The industry average for the current ratio is 1.2. This indicates that Flo’s can cover its short term liabilities with its short term assets.

Beats, Inc. uses a perpetual inventory system and the gross method of accounting for purchases. The company purchased $9,750 of merchandise on August 7 with terms 1/10, n/30. On August 11, it returned $1,500 worth of merchandise. On August 26, it paid the full amount due. The correct journal entry to record the merchandise return on August 11 is:

Debit means increase and credit means decrease for all accounts.

Which of the following transactions or events should be reported as a source of cash from operating activities when using the direct method?

A report that lists a business’s accounts and their balances, in which the total debit balances should equal the total credit balances, is called a(n):

A company had $7,000,000 in net income for the year. Its net sales were $15,200,000 for the same period. Calculate its profit margin.

A bondholder that owns a $1,000, 10%, 10-year bond has:

Cash and office supplies are both classified as current assets.

Which financial statement reports an organization’s financial position at a single point in time?

On November 19, Telphony Co. receives a $15,000, 60-day, 8% note from a customer as payment on account. What adjusting entry should be made on the December 31 year-end? (Use 360 days a year.)