Accounting questions?

Question

A liquidity ration measure the?

income or operating success of a company over a time period

ability of a company to survice over a long period of time

Short term ability of a company to pay its maturing obligations and meet unexpected needs for cash

percentage of total financing providied by creditors

I think the answer is income or operating success of a company over a time period ability of a company to survice over a long period of time- am i correct?

What is an accounting period that is one year in lengh called?

Is it called fiscal year?

What is not an accounting time period?

week

month

year

quarter

I want to say week

What does not need to be adjusted at year end?

office supplies

unearned revenue

prepaid advertising

land

This one I am really not sure. I think it may be land...

Answer 1

the first question about the liquidity ratio is

Short term ability of a company to pay its maturing obligations and meet unexpected needs for cash

Liquidity is regarding how fast the company can sell it short term assets to pay the short term debt.

the one year period is called a fiscal year, this is in reference to the year if the closing is not on the calender year.

yes that would be a week; there are month, quarter and year end closings.

yes, the value of Land would not be adjusted. this is because while it is a fixed asset depreciation is not taken on it.