1. Current ratio of 6 is usually the indication that firm:
a. Has a low degree of liquidity.
b. Has a reasonable degree of liquidity.
c. Has made the most productive use of its assets.
d. Has not made good use of its assets
2. In the advertiser's records, a newspaper ad submitted and published this week with agreement to pay for it next week would
a. Decrease assets and decrease expenses
b. Increase liabilities and increase expenses
c. Decrease assets and increase revenue
d. Increase assets and decrease liabilities
3. Accounting concept/principle being applied when adjustment is made is generally matching revenue and expense
a. True
b. False