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aksik [14]
1 year ago
8

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.

Read more about current assets

brainly.com/question/14287268

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A company recognized an accrued salary expense in Year 1 and paid its employees in Year 2. The financial statements affected in
Volgvan

Answer:

Statement of Financial Position and Cash Flow Statement.

Explanation:

Year 2

<em>1. Statement of Financial Position</em>

Decrease the Liability : Salaries Owing

Decrease the Assets : Cash

<em>2. Cash Flow Statement</em>

Decrease in Liability : Cash Outflows

<em>3. Income Statement</em>

No Effect

<em>4. Statement of Changes in Equity</em>

No Effect

8 0
3 years ago
In a comparative market analysis, the subject property has 2 bedrooms, 2 baths, a 1/2 acre lot and a swimming pool. A $115,000 c
Virty [35]

Answer:

129200 dollar

Explanation:

subject property has 2 bedrooms, 2 baths, a 1/2 acre lot and a swimming pool

The given property

= 2 bedrooms, 1 bathroom, no pool, a 1/2 acre lot, and a screened porch

additional 1 bath room , one pool minus a screened porch will make it similar to subject property

So indicative value of the subject

= 115000+9000+11000-5800

= 129200 dollar.

3 0
3 years ago
Suppose that a surfboard designer owns a building and is renting part of the building's space to a doctor. Further suppose that
mojhsa [17]

Answer:

Yes, if doctor pays at least $275 to designer, there will be no noise and designer will be able to produce without increases costs.

Explanation:

The surfboard designer makes a lot of noise.Doctor on the other hand needs peace to function. The doctor an shift to another building but rent is $350 more.

The surfboard designer can reduce noise through new technology but it costs $275.

Assuming that there is no cost involved in negotiations, both parties can be better off if the doctor pays at least $275 to designer to adopt new technology. The maximum amount the designer will be willing to give will be $350.

4 0
3 years ago
ack Hammer invests in a stock that will pay dividends of $3.06 at the end of the first year; $3.42 at the end of the second year
aleksley [76]

Answer:

$46.82

Explanation:

Present value is the sum of discounted cash flows

present value can be calculated using a financial calculator

Cash flow in year 1 = $3.06

Cash flow in year 2 = $3.42

Cash flow in year 3 = $3.78  + $56 = $59.78

I = 13%

Present value = $46.82

To find the PV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.  

3. Press compute  

8 0
3 years ago
During January, Luxury Cruise Lines incurs employee salaries of $2.4 million. Withholdings in January are $183,600 for the emplo
garri49 [273]

Answer and Explanation:

The journal entry to record the  employee salary expense, withholdings, and salaries payable is shown below:

Salaries expense Dr $2,400,000

     To Income tax payable  ($360,000 + $150,000) $510,000

     To FICA tax payable $183,600

     To Account payable $24,000

     To Salaries payable $1,682,400

(being employee salary expense, withholdings, and salaries payable is recorded)

Here the expenses are debited and payable are credited as it increased the expenses and liabilities

6 0
3 years ago
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