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2 years ago

What will happen to the current ratio if current assets increase, while everything else remains unchanged?

Business

1 answer:

Nana76 [90]2 years ago

5 0

The current ratio will increase if current assets increase, while everything else remains unchanged.

This is further explained below.

<h3>What is the current ratio?</h3>

Generally, A liquidity ratio that evaluates a company's capacity to pay short-term debts or those that are due within the next year is called the current ratio.

It explains to investors and analysts how a business may get the most out of the current assets that are shown on its balance sheet in order to pay off its current debt and any other payables.

A current asset is defined as any asset that a company can reasonably expect to sell, consume, or deplete through the normal operations of the business inside the current financial year or an operating cycle, or an economic year.

In other words, a current asset is an asset that will be sold, consumed, or exhausted.

In conclusion, If current assets continue to grow while everything else stays the same, the current ratio will continue to show an upward trend.

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Hayleah is a california cpa practicing in california. to renew her license in active status, hayleah must to meet the basic requ

kenny6666 [7]

When performing work, there are specific requirements depending on which work Hayleah performs and these are B) Government auditing continuing education requirement

When dealing with governmental accounting:

There are certain rules that must be followed.
The specific rules imposed are to ensure better management of tax payer funds.

As a result, when a California CPA is involved in governmental work, specific rules known as the government auditing continuing education requirements will most likely apply.

In conclusion, option B is correct.

Find out more about different accounting standards at brainly.com/question/24441480.

7 0

2 years ago

Show how the eliminating entries in part a adjust Pearl’s book balances to the correct consolidated balances. Enter Debit and Cr

morpeh [17]

Answer:

a) JOURNAL ENTRIES

Debit Retained Earnings $5,850,000 , Debit Accumulated depreciation $650,000 , Credit Building $6,500,000.

Debit Depreciation $325,000 Credit Accumulated depreciation $325000.

( this is the depreciation for the year on the profit made on the sale by the subsidiary)

b) The balance on the trial balance of Pearl for the asset will be a Carrying balance ( $8,000,000 - [(8000000/20)*3] = $8000000-1200000 =$6,800,000

profit on sale = selling price - carrying value

=$8,000,000 - ($10,000,000- $8,500,000)

= $8,000,000 - $1,500,000

= $6,500,000

depreciation on profit = $6500000/20 = 325,000

accum dep = (325000*2yrs)= $650,000

Explanation:

BELOW IS A COMPLETE QUESTION

Upstream Intercompany Building Transactions

Shiek Shoes sold an administrative building to its parent, Pearl Industries, on January 1, 2018, for $8,000,000. At the time of sale, the building was carried on Shiek’s books at original cost of $10,000,000, with $8,500,000 of accumulated depreciation. At the date of sale, the building had a remaining life of 20 years, and straight-line depreciation is appropriate. It is now December 31, 2020, the end of the accounting year, and you are preparing the working paper to consolidate the trial balances of Pearl and Shiek. Pearl still owns the building.

Required

a. Prepare the required eliminating entries for this intercompany building sale for the December 31, 2020, consolidation working paper.

Enter numerical answers using all zeros (do not abbreviate answers to millions or thousands).

b. What balances does Pearl report in its own trial balance for this building at December 31, 2020?

6 0

3 years ago

Slove in 1 hour plzz

bearhunter [10]

Answer:

14/51

27.5%

Explanation:

5 0

3 years ago

Read 2 more answers

Proponents of rational expectations argued that the sacrifice ratio:______.a. could be high because people might adjust their ex

Arte-miy333 [17]

Answer:

b. could be low because people might adjust their expectations quickly if they found anti-inflation policy credible

Explanation:

In the given situation, it is mentioned that the rational expectations proponets said that the sacrified ratio would be lesser as the people wants to adjust their expectations in a fastest way in the case when they found that the anti-inflation policy is credible

Therefore as per the given situation, the option b is correct

3 0

3 years ago

a senior manager from the business unit most affected by a project and who ensures the project will indeed meet the needs of his

Naily [24]

The above statement is true. The project sponsor is a senior manager from the business unit most affected by a project who assures the project will fulfill the needs of his or her firm.

The project sponsor is in charge of the project's overall success, which includes selecting the project manager and team, establishing success parameters, and guaranteeing the project's timely completion.
Executive sponsor is a position in project management, typically held by the project board's most senior member and frequently its chair. A top executive at a company who is accountable to the company for the project's success will serve as the project sponsor.
Members of senior management who support projects and have a significant amount of influence and power are known as project sponsors. The names of project sponsors vary frequently, including those of product sponsors, project directors, account managers, and business unit managers.

Thus this is definition of project sponsor.

To learn more about project sponsor, refer: brainly.com/question/28387041

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1 year ago