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A business has current assets of $62,000,total assets of $350,000,current liabilities of $31,000,and total liabilities of $125,000.What is its current ratio?


A) 0.5
B) 2.0
C) 2.8
D) 3.0

E) None of the above
F) A) and B)

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What type of entry is made to create a credit balance in the estimated warranty liability account on the balance sheet? What account would be debited in this entry?

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The entry that is made to create an esti...

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During Year 1,Chang Home Centre sold 800 power washers for $350 each.The power washers carry a two-year warranty for repairs.Estimates indicate that repair costs will average 2% of sales.How much warranty expense should be accrued as a result of the Year 1 sales of this product?


A) $2,800
B) $5,600
C) $8,400
D) none until units are brought in for repairs

E) A) and B)
F) None of the above

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Match each of the following current liabilities with its meaning. -CPP


A) account payable
B) note payable
C) wages payable
D) interest payable
E) sales taxes payable
F) CPP payable
G) employment taxes payable
H) unearned sales revenues
I) estimated warranty liability

J) D) and F)
K) E) and F)

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