Barcelona Travel Inc. took out a 2-year loan in late December. Because the loan is for more than 1 year in length, it is not included in current liabilities even though the cash received from the loan is reported as a current asset. This results in improving current and quick ratios and a stronger looking year-end balance sheet. This action taken by Barcelona is an example of: window dressing. O trend analysis. O percent change analysis. O benchmarking.

Barcelona Travel Inc. took out a 2-year loan in late December. Because the loan is for more than 1 year in length, it is not included in current liabilities even though the cash received from the loan is reported as a current asset. This results in improving current and quick ratios and a stronger looking year-end balance sheet. This action taken by Barcelona is an example of: window dressing. O trend analysis. O percent change analysis. O benchmarking.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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