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Author Question: Which of the following is true of Altman's Z-Score Boundaries? A) If a publicly traded ... (Read 114 times)

Pineapplelove6

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on: Jul 6, 2018
Which of the following is true of Altman's Z-Score Boundaries?
 
  A) If a publicly traded non-manufacturing firm has a Z-score of 1.81, it predicts bankruptcy.
  B) If a publicly traded manufacturing firm has a Z-score of 2.60, it indicates non-bankruptcy.
  C) If a publicly traded manufacturing firm has a Z-score of 1.42, the firm is in the zone of ignorance.
  D) The zone of ignorance for privately held manufacturing firms is 1.23 to 2.90.

Question 2

J. Jefferson invested 15,000 cash in his business. The accountant would record the following journal entry:
 a. Cash 15,000
  J. Jefferson, Capital 15,000
   b. J. Jefferson, Capital 15,000
  Cash 15,000
   c. Cash 15,000
  Income from Services 15,000
   d. J. Jefferson, Drawing 15,000
  Cash 15,000


wshriver

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Reply #1 on: Jul 6, 2018
Answer to Question 1

D
Explanation: D) The zone of ignorance for privately held manufacturing company is 1.23 to 2.90.

Answer to Question 2

a


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