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Question 12
On January 1, 2014, Ermler Company, a calendar-year company,
issued $1,000,000 of notes payable, of which $250,000 is due on
January 1 for each of the next four years. The proper balance
sheet presentation on December 31, 2014, is
Question 13
One objective of the income statement is to separate the results of
continuing operations from those of discontinued operations.
Question 14
All of the following are true regarding financial statement
analysis ratios associated with liabilities except
Question 15
A primary objective of the statement of cash flows is to show the
income or loss on investing and financing transactions.
Question 16
A master budget is most useful in evaluating a manager's
performance in controlling costs.
Question 17
The master budget reflects management's long-term plans
encompassing five years or more.
Question 18
The debt to assets ratio measures the percentage of the total assets
provided by creditors
Question 19
A company whose current liabilities exceed its current assets may
have a liquidity problem.
Question 20