Decreases in equity that represent costs of providing products or services to customers, used to earn revenues are called:

When an item has a value in the base period and zero in the analysis period, the decrease is 100 percent.

The higher a company’s debt ratio, the lower the risk of a company not being able to meet its obligations.

The debt ratio is calculated by dividing total assets by total liabilities.

The indirect method separately lists each major item of operating cash receipts and cash payments.

Decreases in equity that represent costs of providing products or services to customers, used to earn revenues are called:

Dancer Co. decides to establish a petty cash fund with a beginning balance of $200. The company decides that any purchase under $25 can be processed through petty cash instead of the voucher system. The journal entry to record establishing the account is:

Dividends always decrease equity.

General standards of comparisons, developed from experience, include the 2:1 level for the current ratio and 1:1 level for the acid-test ratio.

Bagram Corporation had a net decrease in cash of $10,000 for the current year. Net cash used in investing activities was $52,000 and net cash used in financing activities was $38,000. What amount of cash was provided (used) in operating activities?