Author Question: What two measures tell management and short-term creditors if the firm has sufficient capital and ... (Read 240 times)

CharlieWard

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What two measures tell management and short-term creditors if the firm has sufficient capital and can pay its debts?
 a. Working Capital Ratio
  b. Current Ratio
  c. Organizational Ratio
  d. A & B

Question 2

In the fiscal year ended September 30, 20X9, debt service payments were made in January and July from the Debt Service Fund in the total amount of 25,000 (10,000 principal, 15,000 interest).
 
  The sole financial resource for the debt service payments are the proceeds of a special debt service tax levy. The taxes are paid in increments of about 27,000 and are due in June of each year. For the fiscal year ended September 30, 20X9, assuming 24,000 of taxes had been collected for this fiscal year, the expenditures reported in the Debt Service Fund would be
  a. 0
  b. 10,000
  c. 15,000
  d. 24,000
  e. 25,000



sabina576

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Answer to Question 1

D

Answer to Question 2

E



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