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Inessa [10]
2 years ago
5

The sum of cash, current investments, and accounts receivable divided by current liabilities equals the?

Business
1 answer:
Sergio [31]2 years ago
8 0

The sum of cash, current investments, and accounts receivable divided by current liabilities equals the (C) acid-test ratio.

<h3>What is the acid-test ratio?</h3>
  • The quick ratio, also known as the acid-test ratio, is a type of liquidity ratio in finance that measures a company's ability to use its near cash or quick assets to immediately extinguish or retire its current liabilities.
  • It is defined as the proportion of readily available or liquid assets to current liabilities.
  • Quick assets are current assets that can presumably be converted to cash quickly at close to book value.
  • A normal liquid ratio is defined as 1:1.
  • A company with a quick ratio of less than one is currently unable to fully repay its current liabilities.
  • The acid-test ratio equals the sum of cash, current investments, and accounts receivable divided by current liabilities.

Therefore, the sum of cash, current investments, and accounts receivable divided by current liabilities equals the (C) acid-test ratio.

Know more about acid-test ratio here:

brainly.com/question/25814739

#SPJ4

The correct question is given below:
The sum of cash, current investments, and accounts receivable divided by current liabilities equals the?

(A) current ratio

(B) asset turnover ratio

(C) acid-test ratio

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Dealer loader is correct
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Backflush costing is a costing method that: Charges current production costs directly to finished goods inventory. Charges curre
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Answer:

Charges current production cost directly to work-in-process inventory

Explanation:

The blackflush costing is the costing method in which the present cost of production would be charged to the work in process inventory in a direct way

Therefore as per the given situation the second option is correct

ANd, the rest of the options are wrong as it does not meet the criteria

So the second option would be taken into consideration

7 0
2 years ago
Carmen Camry operates a consulting firm called Help Today, which began operations on August 1. On August 31, the company’s recor
ahrayia [7]

Answer:

Equity at August 1st                                       0

adds: Carmen Camry Investment    101,4000

Net Income                                               5,410

Subtotal                                                106,810

Withdrawals                                           -5,950

Carmen Camry capital account at the end of August 31th  100,860

Explanation:

We have to calculae the net income

Fees earned                            26,960

office                           5,200

rent expense                   9,500

salaries expense           5,560

telephone expense      820

miscellaneous expenses    470

Total Expenses         21,550

Net Income                            5,410

Then we do the equity stamtent:

beginning + investment + net income - withdrawals = ending

Equity at August 1st                                       0

adds: Carmen Camry Investment    101,4000

Net Income                                               5,410

Subtotal                                                106,810

Withdrawals                                           -5,950

Carmen Camry capital account at the end of August 31th  100,860

7 0
3 years ago
Read 2 more answers
Souza Inc, which produces and sells a single product, has provided its contribution format income statement for October.
Dafna1 [17]

Answer:

d. $300

Explanation:

Calculation for what its net operating income should be closest to

Using this formula

First step is to calculate the contribution margin per unit using this formula

Contribution margin per unit= Contribution margin ÷ Number of units

Let plug in the formula

Contribution margin per unit= $48,000 ÷ 4,000 units

Contribution margin per unit= $12

Second step is to calculate the contribution margin

Contribution margin = 3,500 units × $12

Contribution margin = $42,000

Now let calculate the net operating income using this formula

Net operating income = Sales - Variable cost - Fixed expenses

Let plug in the formula

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8 0
2 years ago
In working with a client named Fred, you realize that he did not report income that he should have on a return. Fred reported $1
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Answer:

b) Fred must maintain records for 6 years from the year the return was filed

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The underreported income must be greater than 25% of the income.

In the given scenario the Fred reported $10,000 instead of $13,500.

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So Fred will need to keep records for the next 6 years

8 0
2 years ago
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