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love history [14]
2 years ago
3

How is the current ratio computed and interpreted?

Business
1 answer:
Stella [2.4K]2 years ago
4 0

Current Ratio Formula = Current Assets / Current Liabilities. For example- current assets are $250 million and current liability is $100 million, then the ratio will be = $250/$100 = 2.5

What is current ratio? Current ratio is a liquidity ratio that measures the liquidity position of a firm. current ratio tells the investors and shareholders that how they can maximize their current assets on its balance sheet to satisfy its payables and current debts. It also tells about the ability to pay off their debts of a company.

Current Assets and Current Liabilities are compared with each other to determine its current ratio.

to know more about Current Ratio click below

brainly.com/question/28214599

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If the reserve ratio increased from 5 percent to 10 percent, then the money multiplier would a. ​rise from 5 to 10. b. ​fall fro
dezoksy [38]

Answer:

c. ​fall from 20 to 10.

Explanation:

The formula for the money multiplier is 1/reserve ratio,this means that the lower the reserve ratio the higher the multiplier, the reason for this is when the reserve ratio is lower banks can loan out a higher proportion of money therefore more money is created thus the multiplier and reserve ratio have an inverse relationship.

when the reserve ratio is 5% the multiplier is 1/0.05=20

When the reserve ratio is changed to 10% the multiplier is 1/0.1= 10

So the multiplier changes from 20 to 10.

4 0
4 years ago
How would you sell me a computer? What would you say
jok3333 [9.3K]

Answer:

I will sell u the computer by saying that is one of the best computers in my day.

8 0
3 years ago
Which situation is consistent with the law of diminishing marginal utility? a. The more pizza Joe eats, the more he enjoys an ad
Bas_tet [7]

Answer:

b. The more pizza Joe eats, the less he enjoys an additional slice

Explanation:

The law of diminishing marginal utility says that when a person consumes more and more unis, the marginal utility from additional units goes decrease as marginal utility is an additional units derived.

The graph of the law of diminishing marginal utility declines

As in the given scenario,  the Joe eats more pizza, so if he enjoys an additional slice then from each additional slice he less enjoys than before

6 0
4 years ago
Read 2 more answers
INTERVIEW a business owner on the crisis experienced in the workplace attach an interview schedule as part of your oral presenta
Katena32 [7]

Interview helps to select the best fit for a Job.

<h3>What is interview?</h3>

Interview is usually an interactive sessions between an intending employee and the human resources personnel.

The sessions is to know if the individual is the best fit for a job.

Therefore, Interview helps to select the best fit for a Job.

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4 0
3 years ago
The types of resources needed by a business are financial, physical, and labor resources.
sukhopar [10]

Answer:

a. True

Explanation:

The above is true because financial resources are needed to enable a business meet up with its daily activities in terms of funding. Also, physical resources are buildings, machineries and assets in general which are required to carry a business daily operations. The labor resources, which is the most important resources are the workforce that carry out the day to day operations of a business.

8 0
3 years ago
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