1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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

You might be interested in
A common error the auditor may find during the audit of property, plant, and equipment is that the client neglected to make a jo
inna [77]

Answer:

In the current case, the CPA checked the initial adjusts of property, plant and gear during his first year of commitment. Presently during his subsequent year, he goes over certain things which may expect him to change his review systems.  

Part  1.

At the point when the associate controller expressed that "they had such a large number of additional items lying around", the CPA would have realized that numerous additional printers and the scanners are there in the organization. As the organization isn't a misfortune making endeavor or scaling down, there is no purpose behind this to occur, other than that the organization has bought new printing and examining hardware.  

Thus, numerous old printers and scanners have gotten out of date and now are lying around being pointless.  

Additionally, as the CPA would have entered the customer office and had introductory conversations with the administration, before beginning of the review strategies, he would have seen the numerous scanners on every representative's work area, yet no printer. That also have cautioned the CPA with respect to the organization's difference in hardware use.  

Part 2.

Presently, as the organization has bought numerous new gear, the review technique which can be included are:  

  • Verify the physical gear with the solicitations being entered in the framework  
  • The sensibility of the new buys  
  • The treatment of the old gear, regardless of whether disposed of and discounted from the books or not  
  • The cost booked in the benefit and misfortune account, for the gear lying around the workplace, yet with no utilization and scrap esteem left  
  • As the organization has rolled out numerous improvements with the benefits of the organization, physical check of the advantages ought to be certainly considered in the review program  

Part 3.

The cost in regards to the new gear in the financials would have furnished the CPA with the data that organization has brought about costs on the new hardware.  

The expanded devaluation cost would have raised the doubt.  

The conversations with the administration about the general working of the organization and the advancement of the organization would have featured this point in the discussion.  

Other than this, irregular voyage through the workplace and conversations with not many of the representatives would have featured this act of the organization to the examiner.

6 0
3 years ago
Mm mjhuuuuuuuuuuuuuuuuuuuuuh
strojnjashka [21]

Answer: Mm mjuuuuuuuuuuuuuuuuuuuuuh

Explanation: Mm mjhuuuuuuuuuuuuuuuuuuuuuh

5 0
3 years ago
Read 2 more answers
Why do retailers offer credit?​
SpyIntel [72]

Answer:

Iam sorry

Explanation:

I don't know the answer

4 0
2 years ago
Read 2 more answers
Calculate the dollar rates of return on the following assets: A painting whose price rises from $200,000 to $250,000 in a year.
Gennadij [26K]

Answer

A. 25%

B.8%

C. 1.2%

Explanation:

a)

($250,000 − $200,000)/$200,000 = 0.25 or 25%

b)

($275 − $255)/$255 = 0.08 or 8%

Their was No exchange rate movements involved assets & returns all in U.S. dollars

c.

Step 1: £10,000 * $1.50/£ = $15,000 initial $ investment

Step 2: £10,000 * (1.10) = £11,000 at end of year

Step 3: £11,000 * $1.38/£ = $15,180 at end of year

Step 4: ($15,180 - $15,000)/$15,000 =

0.012, or 1.2%

7 0
3 years ago
Explain the entries on a W-4 form and describe its purpose.
yKpoI14uk [10]
A W-4 form is a short form you use when you don't have a lot of things to pay for. So when you get out of high school is an example to use it. so one of the entries is your paycheck amount, tax, and how much money you will or will not get
8 0
3 years ago
Other questions:
  • Fees are never charged when depositing money into your checking account. True or False
    12·2 answers
  • One reason forever green lawn service uses __________ segmentation is because finding new customers is costly.
    5·1 answer
  • Connie, a single mother and home-business entrepreneur, enjoys running her own business. However, because she is busy balancing
    11·1 answer
  • Assume the Expectations Hypothesis regarding the term structure of interest rates is correct.
    7·1 answer
  • One reason to buy a home instead of rent a home is:
    10·2 answers
  • "The process through which consumers receive stimulation, transform it into meaningful information, store the information in mem
    12·1 answer
  • If businesses follow regulations, financial disasters are far less likely.
    14·1 answer
  • The expected return and standard deviation of a portfolio that is 30 percent invested in 3 Doors, Inc., and 70 percent invested
    12·1 answer
  • What impact is Walmart’s acquisition of nontraditional retailers likely to have on the shopping habits of Walmart’s customers?​
    6·1 answer
  • Madison Corporation sells three products (M, N, and O) in the following mix: 3:1:2. Unit price and cost data are: M N OUnit sale
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!