11) Complete the following statement correctly: The relationship between current assets and current liabilities is important in evaluating a company's ... a) profitability b) liquidity c) current value d) solvency 12) Which of the following is true about inventory systems? a) Periodic inventory systems require more detailed inventory records. b) A periodic system requires cost of goods sold to be recorded after each sale. c) Perpetual inventory systems require more detailed inventory records. d) A perpetual system determines cost of goods sold only at the end of the accounting period. 13) Skye Inc. purchased 400 units of Product A for $44 each during 2018. The selling price during the year was $60 per unit. At year end, it had 78 units on hand and due to market changes, the selling price will have to be reduced by 40% in order to sell them. There is no beginning inventory to consider. What year-end inventory does Skye Inc have to present in their statement of financial position? a) $2,808 b) $11,592 c) $4,680 d) $3,432 14) An NSF cheque received from a customer should appear in which section of the bank reconciliation? a) addition to the balance per books b) deduction from the balance per books c) addition to the balance per bank d) deduction from the balance per bank 15) A company using a perpetual inventory system that returns goods purchased on credit would a) debit Accounts Payable and credit Inventory b) debit Sales and credit Accounts Payable c) debit Cash and credit Accounts Payable d) debit Accounts Payable and credit Purchases