Multiple Choice Answers

Bonds payable due in 2020 are reported on the balance sheet as long-term liabilities.
True
False
The current year’s advertising costs are normally considered period costs.
True
False
Preferred stockholders have preferential rights over common stockholders and creditors.
True
False
The relationship of 120 to 100 can be expressed as 1.2, 1.2:1, or 120%.
True
False

If a firm has a current ratio of 2, the subsequent receipt of a 60-day note receivable on account will cause the ratio to decrease.
True
False