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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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Bill has been adding funds to his investment account each year for the past 3 years. He started with an initial investment of $1
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Answer:

2.96% will be effective rate of the investment

Explanation:

First year:

1,000 x 1 + 10%) = 1,100

<em><u>Second year: </u></em>

1,100 + 3,000 = 4,100 invesmtent balance

4,100 x (1  - 5%) = 3,895

<em><u>Third year:</u></em>

3,895 + 2,000 = 5,895

5,895 x (1 + 2%) = 6012.9

<em><u>Fourth year:</u></em>

6012.9 + 500 = 6512.9

6,512.9 x (1+ 8%)  =  7033.932

We calcualte rate that is equivalent with the following cash flow:

1,000 (1+r)^4 + 3,000  (1+r)^3 +  2,000(1+r)^2 +  500(1+r) = 7,033.93

We solve using excel goal seek

0.029646151

6 0
3 years ago
Your soccer team remains undefeated and is preparing for the state playoffs. You happen to know and can prove that several playe
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Which of the following is NOT a benefit of specialization and trade? Select one: a. Increase in productivity from specialization
lbvjy [14]

Answer:

b. It creates equality throughout society

Explanation:

Specialisation & Trade refer to tendency of countries to produce goods of their specialisation & trade them with each other , rather than each country producing each good.

It leads to increase in productivity from knowledge specialisation, based on advantage (absolute, comparative) based production. It also makes people better off, increase in welfare due to choice expansion among differing preferences.

However, it is not in anyways connected to equality throughout society.

3 0
2 years ago
there is a surplus of a new brand of cereal on the market. what will likely happen to the price of the cereal?
Lerok [7]

Answer:

The price of the cereal would fall.

Explanation:

In Economics, there are primarily two (2) factors which affect the availability and the price at which goods and services are sold or provided, these are demand and supply.

The law of demand states that, the higher the demand for goods and services, the higher the price it would be sold all things being equal. On the other hand, law of supply states that the higher the price of goods and services, the lower the supply.

When there is a surplus of a new brand of cereal in the market. What will likely happen to the price of the cereal is that the its price would fall.

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