Matching Questions
-Each transaction numbered 1 through 5 below involves an equity security originally acquired at a cost of $1,000. Identify the effect each transaction has on the current ratio and earnings per share by selecting from the effects listed in a through f. You may use each letter more than once or not at all.

____ 1. Trading securities with a current balance sheet value of $1,200 are sold for $1,100.
____ 2. Trading securities with a current balance sheet value of $800 are sold for $800.
____ 3. Trading securities with a current balance sheet value of $1,200 are sold for $1,300.
____ 4. Available-for-sale securities have a market value of $800 at yearend.
____ 5. Available-for-sale securities have a market value of $1,200 at yearend.

Question

Matching Questions
-Each transaction numbered 1 through 5 below involves an equity security originally acquired at a cost of $1,000. Identify the effect each transaction has on the current ratio and earnings per share by selecting from the effects listed in a through f. You may use each letter more than once or not at all.
  
____ 1. Trading securities with a current balance sheet value of $1,200 are sold for $1,100.
____ 2. Trading securities with a current balance sheet value of $800 are sold for $800.
____ 3. Trading securities with a current balance sheet value of $1,200 are sold for $1,300.
____ 4. Available-for-sale securities have a market value of $800 at yearend.
____ 5. Available-for-sale securities have a market value of $1,200 at yearend.

Quizplus · Accepted Answer

The Answer of Matching Questions
-Each transaction numbered 1 through 5 below involves an equity security originally acquired at a cost of $1,000. Identify the effect each transaction has on the current ratio and earnings per share by selecting from the effects listed in a through f. You may use each letter more than once or not at all.
  
____ 1. Trading securities with a current balance sheet value of $1,200 are sold for $1,100.
____ 2. Trading securities with a current balance sheet value of $800 are sold for $800.
____ 3. Trading securities with a current balance sheet value of $1,200 are sold for $1,300.
____ 4. Available-for-sale securities have a market value of $800 at yearend.
____ 5. Available-for-sale securities have a market value of $1,200 at yearend.

Matching Questions -Each Transaction Numbered 1 Through 5 Below Involves an Equity