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1 year ago

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

Business

1 answer:

Nana76 [90]1 year 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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quizlet The Electronic Frontier Foundation is critical of media companies for their efforts to __________.

BARSIC [14]

quizlet The Electronic Frontier Foundation is critical of media companies for their efforts to<u> </u><u>limit the capabilities of new technologies in order to increase their corporate revenue.</u>

what is corporate revenue ?

The money that remains after a firm has paid all of its expenses is known as corporate profit. Top-line revenue is the total amount of money received by a company from the sale of goods or services during the reporting period. From revenue, a company will pay its expenses. The amount that remains after expenses are paid is referred to as the business's profit.

Additionally, the U.S. Bureau of Economic Analysis (BEA) releases a quarterly statistic known as "corporate revenue " tha compiles the net income of businesses as reported in the National Income and Product Accounts (NIPA). One of the primary sources of information on overall economic activity in the United States is the National Income and Product Accounts (NIPA), which are a component of the national accounts of the country.

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7 0

1 year ago

Medium:

Sever21 [200]

Answer: 335000

Explanation:

The company's cost of goods available for sale will be calculated as the addition of the begining inventory, the net purchases and the freight. This will be:

= Beginning inventory + Purchases + Freight

= 250000 + 70000 + 15000

= 335000

4 0

3 years ago

Kelsay Corporation has provided the following contribution format income statement. Assume that the following information is wit

mario62 [17]

Answer:

the contribution margin per unit is $15 per unit

Explanation:

The computation of the contribution margin per unit is shown below:

Contribution margin per unit is

= Selling price per unit - variable cost per unit

= ($540,000 ÷ 9,000 units) - ($405,000 ÷ 9,000 units)

= $60 - $45

= $15 per unit

Hence, the contribution margin per unit is $15 per unit

7 0

3 years ago

Diaz Company owns a milling machine that cost $250,000 and has accumulated depreciation of $182,000. Prepare the entry to record

nadya68 [22]

Answer:

1) loss at disposal 68,000 debit

accumulated depreciation 182,000 debit

milling machine 250,000 credit

2) loss at disposal 33,000 debit

cash 35,000 debit

accumulated depreciation 182,000 debit

milling machine 250,000 credit

cash 68,000 debit

accumulated depreciation 182,000 debit

milling machine 250,000 credit

4) cash 80,000 debit

accumulated depreciation 182,000 debit

gain at disposal 12,000 credit

milling machine 250,000 credit

Explanation:

the book value is the same for all alternatives:

cost - accumualted depreciation

250,000 - 182,000 = 68,000 net book value

1) as there is no salvage value all the book alue is considered loss at disposal

from #2 to #4 we recieve cash for the milling machine to determinate the loss/gain we need to do as follows:

proceeds less book value = result (gain if positive loss if negative)

2) 35,000 - 68,000 = -33,000

3) 68,000 - 68,000 = 0

4) 80,000 - 68,000 = 12,000

8 0

3 years ago

Land and other real estate held as investments by endowments in a government's permanent fund should be reported at

VashaNatasha [74]

Complete Question:

Land and other real estate held as investments by endowments in a government’s permanent fund should be reported at

Group of answer choices

A. Historical cost.

B. Fair value less costs of disposal.

C. Fair value.

D. The lower of cost and net realizable value.

Answer:

C. Fair value.

Explanation:

Land and other real estate held as investments by endowments in a government's permanent fund should be reported at fair value of the reporting date except for the exception of life insurance contract, external investment pool, money market investment etc.

The fair value can be defined as the actual or real value of an asset, security, product or item in financial accounting.

5 0

3 years ago