ACC 577 help A Guide to career/uophelp.com ACC 577 help A Guide to career/uophelp.com | Page 27

Compared to the accrual basis of accounting, the cash basis of
accounting understates income by the net decrease during the accounting
period of
Question 17
On July 1, 20x2, Dewey Co. signed a 20-year building lease that it
reported as a capital lease. Dewey paid the monthly lease payments
when due. How should Dewey report the effect of the lease payments in
the financing activities section of its 20x2 statement of cash flows?
Question 18
In a comparison of 2004 to 2003, Neir Co.'s inventory turnover ratio
increased substantially although sales and inventory amounts were
essentially unchanged. Which of the following statements explains the
increased inventory turnover ratio?
Question 19
Heath Co.'s current ratio is 4:1. Which of the following transactions
would normally increase its current ratio?
Question 20
Which of the following levels of the fair value hierarchy, if any, requires
the most extensive disclosures about fair value measurements?
----------------------------------------------------------------------------
ACC 577 Week 2 Quiz (100 % Correct Answers)