Answer:
C) Decrease the acid-test ratio
Explanation:
The quick ratio is also called acid test ratio. It is a liquidity ratio that measures level of liquid assets of a business.
That is the amount of cash or near cash assets it has to settle it's current debt.
Mathematically
Quick ratio = (Current assets - Inventory) ÷ Current liabilities
If cash (current asset) is used to buy Inventory. Cash will reduce and inventory will increase.
The value of (Current asset - Inventory) reduces.
As the numerator in the ratio reduces, the quick ratio also reduces.
Answer:
B. 100 shares of ABC preferred stock
Explanation:
Shares are ownership stakes of a company that are given out to individuals who contribute to capital base of a company.
Preference shares are those whose owners recieve preference in payment of dividends, a fixed dividend is paid to them.
Ordinary shares recieve less preference when dividend is paid, usually coming last in divedend payment.
In this scenario ABC has decided to pay 10% stock dividend. This will be paid to ordinary share holders.
So the person with 100 preference shares will have 100 preference shares
10% of par value of $100 is 0.1 * 100= $10
Number of shares are 100 so the value is now 100 * $10 = $1,000
Since the conversion rate of preference to ordinary shares is 10:1
Number of preference shares= 1,000 ÷ 10= 100 preference shares
Answer:
The correct answer is B. Accounting firms are prohibited from providing many types of consulting services to the companies they audit.
Explanation:
The main reason for this policy is that it does not allow conflicts of interest to arise that eventually produce widely known cases of fraud, such as those presented at the Enron and Worldcom companies.
The Enron case broke out in the U.S. when that energy giant announced what was once the biggest bankruptcy in the history of the country, with a debt of 31,000 million dollars, something overcome a few months later by the collapse of another colossus, WorldCom.
In June 2002 WorldCom, the second US telephone. and of the world, he admitted that he had lied in his accounting books for almost 4,000 million dollars and his actions - which shortly before touched his maximum of 16 dollars - collapsed to 20 cents. His bankruptcy exceeded Enron's: $ 35 billion of liabilities.
Answer:
The actual price = $1.08
Explanation:
The standard material price can be worked out as follows:
<em>Step 1: Work out the standard price of material using the material usage variance</em>
Standard price = Material usage variance/(standard quantity of material - actual quantity)
Standard quantity of material = standard qty per unit × actual production
= 4 × 17,000 =68,000
Standard price = 2,800/(68,000-64,000)= $0.7
<em>Step 2 : Work out the Actual material price using the material price variance</em>
Material price variance = (Standard price - Actual price )× Actual quantity of material
6,400 = (y - 0.7) × 17,000
6400 = 17,000y - 11,900
17,000 y = 6,400 + 11,900
y = 18,300/17,000= 1.08
The actual price = $1.08
Answer:
process control systems, human resource management systems, sales and marketing systems, inventory control systems, office automation systems, enterprise resource planning systems, accounting and finance systems and management reporting systems.
Explanation:
