Question & Answer: Ip 100-1071 On March 1, Xeno purchased $700 in office supplies. On March 31, it had only $500 in office supplies remaining. To bring the accounts up to date…..

Ip 100-1071 On March 1, Xeno purchased $700 in office supplies. On March 31, it had only $500 in office supplies remaining. To bring the accounts up to date on March 31, what two accounts must be adjusted by an adjusting entry? p 100-105] Two of the following reflect appropriate reasons for making year-end adjusting entries. Which is NOT a valid, appropriate reason for making year-end adjusting entries? This is different than the original journal entry when the supplies were purchased.| OBring various accounts up to date to reflect transactions or events that extend over more than one accounting period. O Supplies and Accounts payable O Supplies expense and Cash O Supplies expense and Supplies O Supplies and Cash OAssigning expenses to the periods in which the expenses were incurred, even if they have not yet been paid O “Smoothing” sharp increases or decreases in net income over two or more periods, so net income appears more stable p 125-132] The current ratio p 125-132] Most of the following statements are true of the profit margin ratio. Which statement is FALSE regarding the profit margin ratio? O Helps to evaluate a company’s ability to pay its short-term (current) liabilities O Is sometimes called return on sales 0 Is used to measure a company’s long-term profitability O It reflects the percent of profit in each dollar of net sales used to measure the relation between assets and long-term debt O It measures the risk that the firm cannot pay its short-term obligations O Measures how quickly a company is selling its O It is calculated by dividing net income by net inventory sales Critical thinking and p 125-132] Clara’s Construction has current assets of $5.000 and noncurrent assets of $10,000, lt also has current liabilities of $12,000 and long-term liabilities of $28.000. What amounts will Clara use to calculate the Current ratio? lp 117-128 and criticall thinking] Most of the following statements are true. Which statement is FALSE O Proft mangin ratio reflects the amount of pront in each dollar of net sales $5,000 and $10,000 $12.000 and $28.000 $10,000 and $12,000 O$5,000 and $12.000 。Current ratio reflects a company’s ability to repay its long term debe O A sik-month nobe payable is a oument lability O Current ratio is computed as curent assets divided by current labilities