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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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Answer:

<u>Lateral moraine</u>

Explanation:

It is important to note the duration of years here; 150 years ago. The Lateral moraine is a very familiar image when dealing with glaciers.

Therefore, the Lateral moraine would be most useful for tracing valuable gold deposits back to their bedrock source area since it is also an unconsolidated debris that is found on the side of glaciers.

6 0
3 years ago
Mrs. Eller's corporate employer has a cafeteria plan under which its employees can receive a $3,000 year-end Christmas bonus or
Alina [70]

Answer and Explanation:

a. The computation is shown below;

Cash bonus after tax is ($3,000 × (1 - 0.24) $2,280

And, non taxable fringe benefit is $2,300

So here he should use the nontaxable fringe benefit

b. Yes answer would be changed

Cash bonus after tax is ($3,000 × (1 - 0.12) $2,640

And, non taxable fringe benefit is $2,300

hence, the same is to be considered

4 0
3 years ago
Park Company reports interest expense of $340,000 and income before interest expense and income taxes of $6,120,000.(1) Compute
algol13

Answer: 1. 18 times

2. Park is in better position

Explanation:

1. Times interest earned is a financial ratio that measures interest coverage. It's essentially to check if a company can pay it's debt payments and is calculated by either EBIT or EBITDA divided by the total interest expense. The higher the better and anything above 2.5 times is usually considered.

Calculating would therefore be,

= $6,120,000 /$340,000

= 18 times.

2. As mentioned in the first answer, for the Times interest earned, the higher it is, the more favourable it is. So Park Company will be considered safer and are most definitely in a better or worse position than its competitor to make interest payments if the economy turns bad. The fact that theirs is 18 means that they can pay off their interest expense 5 times more than their competitor who can only repay 12 times.

If you need any clarification do comment.

7 0
3 years ago
Grayson (single) is in the 24 percent tax rate bracket and has sold the following stocks in 2019: (Loss amounts should be indica
Anika [276]

Answer:

$8,940

Explanation:

For computing the amount of the gain first we have to need to do the following calculations

a. Net short term gain or loss is shown in the attachment

b. Net long term gain or loss is shown in the attachment

c. Net capital gain arise from these transactions are as follows

= Short term capital gain or loss + Long term capital gain or loss

= -$240 + $9180

= $8,940

d.The whole net capital gain of $8,940 will be taxable at a preferential rate.

7 0
3 years ago
What is the name of the law, administered by the governor through the Office of Consumer Affairs, that is designed to protect th
pochemuha
The Georgia fair business practices act
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2 years ago
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