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Acct 2000 Exam 2 Lsu Terms Actual Exam 2026 Real Questions And Solutions Expert Verified Answers

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ACCT 2000 EXAM 2 LSU TERMS ACTUAL EXAM 2026 REAL QUESTIONS AND SOLUTIONS EXPERT VERIFIED ANSWERS

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ACCT 2000 EXAM 2 LSU TERMS ACTUAL
EXAM 2026 REAL QUESTIONS AND
SOLUTIONS EXPERT VERIFIED ANSWERS

●● Operating Cycle.
Answer: Average time it takes from purchase of inventory to the
collection of cash from customers


●● Liquidity.
Answer: Order in which assets are converted into cash


●● Order of Liquidity.
Answer: cash, short term investments, acct receivable, inventory,
supplies, prepaid insurance


●● Accumulated depreciation.
Answer: The total of depreciation that a company has taken on assets
(subtracted)


●● Intangibles.
Answer: Assets that do not have a physical substance yet

, ●● Ratio.
Answer: Expresses the mathematical relationship between one quantity
and another


●● Probability ratio.
Answer: Measures the income or operating success for a company for
given period of time


●● Working capital.
Answer: Current assets minus current liabilities


●● Liquidity ratio.
Answer: Measures the short-term ability of the company to pay its
maturing obligations and unexpected needs for cash


●● Current ratio (liquidity).
Answer: Current assets/current liabilities


●● Solvency ratio.
Answer: Measures the ability of the company to survive over a long
period of time


●● Debt to total assets.

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