Answer:
<h2>First Part</h2>
1. True
Liquidity ratios such as the Current ratio are used to show that a company can cover its short-term obligations.
2. True
Asset management ratios juxtapose a company's performance vs its long term assets and so provide insights into management's efficiency.
3. False
Debt management ratios show how much of the company is funded by total debt not whether it has sufficient cash to repay its short- term debt obligations.
4. True
Profitability ratios take into account how much income is raised by a company so when this increases, the ratios will as well.
5. True
Market-Value ratios show the firm's value in the market which is a reflection of what investors and the markets think about the firm's growth prospects or current and future operational performance.
<h2>Second Part</h2>
The Weakness/ Limitations are;
a. A firm may operate in multiple industries.
Should this be the case, the company's performance in one sector cannot necessarily be compared to companies that operate in that single sector because it would not take into account the company's other sectors which may impact figures.
c. Different firms may use different accounting practices.
When different accounting practices are used, ratio analysis may not be a true indication of the situations in the company. For instance, a company using LIFO cannot be effectively compared to a company using FIFO when using ratio analysis.
Answer: False
Explanation:
In a production budget, when the number of units in finished goods inventory at the end of the period is less than the number of units in the finished goods inventory at the beginning of the period, this simply means that the expected number of units sold is higher than the number of units that was produced for that particular period.
Fro example, let's assume that the beginning inventory is 20,000 and the units of goods produced is 25,000 while the units sold is 27,000. Then, the ending units will be:
= 20,000 + 25,000 - 27,000
= 18,000
As we can see from the example, the number of units in the finished goods inventory at the end of the period(18,000) is less than the number of units in the finished goods inventory at the beginning of the period(20,000), the expected number of units sold(27,000) is more or higher than the number of units to be produced(25,000) during the period.
Answer:
The simplest form of automation is Robotic Process Automation (RPA).
Explanation:
The process refers to the development and implementation of technology to create and distribute goods and services with little human intervention is automation.
Answer:
COGS= $5,910
Explanation:
Giving the following information:
Beginning inventory= 90 units at $19
Purchases 315 units at $20
Purchases 45 units at $22
Ending inventory= 150 units
First, we need to determine the number of units sold:
Units sold= 450 - 150= 300 units
Under the FIFO (first-in, first-out) method, the cost of goods sold is calculated using the cost of the first units incorporated:
COGS= 90*19 + 210*20= $5,910
