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2 years ago

If the total assets to equity ratio of a company is increasing, it is possible that:

1 answer:

6 0

When the proportion of the total assets to equities ratio increases, it is an indication that the company is less dependent on the debts of creditors.

<h3>What is assets to equity ratio?</h3>

The assets to equity ratio represents the number of assets earned by an organization with the use of debt resources. If such ratio increases, the use of debts is lowered by the company.

An increase in the assets to equity ratio also indicates that the company is operating at very low risks of losing money, acquired through debt mode.

Hence, option B holds true regarding the assets to equity ratio.

Learn more about assets to equity ratio here:

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3 years ago

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Answer:

are records of increases and decreases in individual financial statement items

Explanation:

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4 years ago

Many new ventures focusing on craft beer have been launched. If the goal is to make a profit, perhaps it would have been a bette

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Answer:

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b. Total efficiency variance = $450 Unfavorable

Explanation:

From the question, we have:

Standard for hops = 20 pounds per barrel

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Actual rate = Actual cost of hops per pound = $15

Therefore, we have:

a. Compute the total rate variance for the past month

Total rate variance = (Actual rate - Standard rate) * Actual quantity = ($15 - $13) * 830 = $1,660 Unfavorable

The total rate variance of $1,660 is unfavorable because the Actual rate is greater than the Standard rate.

b. Compute the total efficiency variance for the past month

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The total efficiency variance of $450 is unfavorable because the Actual quantity is greater than the Standard quantity.

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3 years ago

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