Answer them correctly and completely
1- For a retail company, if accounts payable historical has one month's inventory purchases what is the fraction of cogs that the auditor should expect in A/Payable?
A- 1/3
B-1/6
C-1/2
D-1/12
2- If the company records a sale with 25% gross margin, what happens to the current ratios for a $1 sale?
A- current ratio increased by the amount of the sale
B- current ratio decreased by the amount of the sale
C- current ratio increased by the 25% of the sale
D- current ratio decreased by the 25% of the sale
3- If a company has a quick ratio of 3:1, and then they pay a dollar on 12/31 on an A/payable due (no discount) what happens to the quick ratio?
A- The quick ratio increase
B- The quick ratio decrease
C- The quick ratio remains the same
4- If a company forgets to depreciate their fixed assets for the year, what happens to the debt to equity (leverage) ratio
A- Increase
B- Decrease
C- Stays the same
5- If the auditor thinks that some inventory may need to be written off (not extraordinary), what gappens to the current ratio and net marvin ratio
A- Current ratio increases, net margin increases
B- Current ratio increases, net margin decreases
C- Current ratio decreases, net margin increases
D- Current ratio decreases, net margin decreases