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y position or from inadequate sales volume. 6. Which statement regarding the liabilities and owners’ equity section of balance sheet is False? ( ) a. Payment of Dividend Payable eliminates both the assets and the owners’ equity b. Liabilities are debts or obligations that must be discharged in money or services in the future c. Owners’ equity is a residual claim to the remaining assets after discharge of debts. 3 d. Balance sheet of corporations should separate Capital Stock and Retained Earnings. 7. What is the difference between the quick and current ratio? ( ) a. The quick ratio deals with the pany’s ability to pay its liabilities whereas the current ratio does not b. The current ratio is a more stringent(嚴(yán)格的 ) test of liquidity than the quick ratio. c. The quick ratio excludes inventory, which the current ratio includes for calculation purposes. d. Management primarily uses the current ratio whereas investors and analysts are the primary users of the quick ratio. 8. What of the following is Not an example of apportionment of recorded costs? ( ) a. Depreciation of fixed assets b. Reallocation of receipts in advance. c. Expiration of insurance premium. d. Consume of supplies. 9. For its most recent year, a corporation had beginning and ending accounts receivable balances of $50,000 and $60,000, respectively. The year39。s