9 In calculating the current included ratio which item would

9. In calculating the current included. ratio which item would not be a. equipment b. accounts payable c. accounts receivable d. short term investments Bonds payable in two years would be classified as. a. noncurrent assets b. equity c. current liability d. noncurrent liability 10.

Solution

9. Correct answer is option a. Equipment

While calculating current ratio,only current asset & current liability are considered,not Fixed assets.

Current ratio = Current asset / Current liabiity

10.Correct answer is option d.Noncurrent liability.

Since the liabiity not occuring within one year it cannot be called as current liability.