Answer:
A) Fluctuating market prices of short-term investments may adversely affect the ratio.
Explanation:
The quick ratio (or acid test) measures a company's ability to pay short term liabilities using its liquid assets. usually the best quick ratio is 1, because it means that your liquid current assets cover completely your current liabilities.
There are two formulas to calculate the quick ratio:
- quick ratio = (cash + marketable securities + accounts receivables) / current liabilities
- quick ratio = (current assets - inventory - prepaid expenses) / current liabilities
The quick ratio includes the value of short term investments, and any fluctuation in their price may affect the ratio.
Answer:
It is 1.12 (B)
Explanation:
Profitability Index= PV of Future cash flow/Initial Investment
= $72,800/$65,000
=1.12
The index is a useful tool for ranking investment projects and making decision most especially when there is limited capital availbal and all the viable projects cannot be executed. It showed the value created per unit of investment.
Hence, the higher the profitability index, the more attractive the investment is.
<u>Full question:</u>
You know that firm XYZ is very poorly run. On a scale of 1 (worst) to 10 (best), you would give it a score of 3. The market consensus evaluation is that the management score is only 2. Should you buy or sell the stock?
A. Buy
B. Sell
<u>Answer:</u>
Buy the stock
<u>Explanation:</u>
At any position in time, the stock price displays all candidly accessible erudition about the company. This implies that an investor can obtain abnormal returns only if that investor holds private erudition about the firm's forecasts.
The firm's administration is not as critical as everyone else considers it to be, hence, the firm is underestimated by the market. You are scarcely hopeless about the firm's probabilities than the assumptions constructed into the stock price. As the administration of the firm is not as weak as anticipated to be. So the investor will determine to buy the stocks of the firm.
She exhibited cognitively sort of organizational conduct.
Organizational behavior(OB) is the multidisciplinary look at worker interactions and the organizational methods that searching for to create more green and cohesive groups.
In its middle, organizational behavior analyzes the effect of social and environmental factors that affect the manner personnel or groups work. The manner human beings engage, communicate, and collaborate is key to an agency's success.
Those kinds of conduct are proactive in nature and act to enhance situations for the man or woman, institution, or employer. Examples of these behaviors encompass trouble promoting, taking initiative, optimistic trade-orientated communication, innovation, and proactive socialization.
Learn more about organizational behavior here: brainly.com/question/16835247
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Answer:
carrying value after 2 years = $967.64
Explanation:
the journal entry to record the purchase of the bond:
Dr Investment in bonds 1,000
Dr Premium on investment in bonds 41.60
Cr Cash 1,041.60
Assuming a straight line amortization, the yearly amortization = $41.60 / 9 years = $4.62 per year
carrying value at moment of purchase = $958.40
carrying value after 1 year = $963.02
carrying value after 2 years = $967.64
