1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
tatyana61 [14]
3 years ago
11

All of the following regarding the current ratio are true except: Multiple Choice Current ratio is calculated by dividing curren

t assets by current liabilities. Current ratio helps to assess a company's ability to pay its debts in the near future. Current ratio does not affect a creditor's decision on whether to allow a company to buy on credit. Current ratio can affect a creditor's decision about whether to lend money to a company. Current ratio can reveal challenges in covering short-term obligations if it is less than 1.
Business
2 answers:
nasty-shy [4]3 years ago
7 0

Answer:

Current ratio does not affect a creditor's decision on whether to allow a company to buy on credit.  This Statment is False.

Explanation:

If the current ratio is below 1 or near 1 then a creditor may not be interest in doing trade credit becasue, there is a risk for the debt to default, or it may do it but with a higher interest yield.

Pavlova-9 [17]3 years ago
7 0

Answer:

Current ratio does not affect a creditor's decision on whether to allow a company to buy on credit

Explanation:

Current ratio is a liquidity tool used  by a company to evaluate its ability to meet up with short term financial obligations.

It is always a first point of call to investors , creditors and analyst so as to evaluate the risks involved in a potential transaction.

The statement " Current ratio does not affect a creditor's decision whether to allow a company to buy on credit " is not true as it can give an insight into the ability of the buying company to pay as at when due , hence the possibility of bad debts are reduced.

You might be interested in
Prestwich Corporation has two service departments and two operating departments. Costs of the Building and Grounds service depar
shepuryov [24]

Answer:

$20,880

Explanation:

Under the direct method we ignore services that are provided to the other service departments.

In order to allocate the building operation costs to Operating department A, we need to determine what percentage of the building space taken up by Operating departments is used by Operation Department A.

There is a total of 50000 square feet and Operating Department A occupies 60%(30000/50000 of that.

So Operating Department A will get 60% of the building costs

  i.e., 60% × 34800 = 20,880

7 0
3 years ago
Windsor Inc. issues 500 shares of $10 par value common stock and 100 shares of $100 par value preferred stock for a lump sum of
RSB [31]

Answer:

Answer for the question:

Windsor Inc. issues 500 shares of $10 par value common stock and 100 shares of $100 par value preferred stock for a lump sum of $107,000. (a) Prepare the journal entry for the issuance when the market price of the common shares is $164 each and market price of the preferred is $205 each. (b) Prepare the journal entry for the issuance when only the market price of the common stock is known and it is $184 per share. (Round answers to 0 decimal places, e.g. $1,225. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) No. Account Titles and Explanation Debit Credit (a) enter an account title for case A

is given in the attachment.

Explanation:

Download pdf
3 0
3 years ago
Forward Fuels is a chemicals manufacturer with a large research and development team searching for new alternatives to gasoline.
ivanzaharov [21]

The OSHA regulations should still be followed. Failure to do so will expose the company to fees, penalties, and potential legal vulnerabilities.

6 0
3 years ago
In considering NBAC’s analytic approach, an otherwise competent person who is acutely ill might be considered at especially high
xxMikexx [17]

Answer:

c. Situational cognitive vulnerability.

Explanation:

Situational cognitive vulnerability -

It is the cognitive vulnerability in the field of cognitive psychology , it is the belief of cognitive bias .

It is the situation that does not allow to exercise the capabilities effectively .

hence , from the question ,

The correct term according to the statement of the question is  - c. Situational cognitive vulnerability.

5 0
3 years ago
Jewel Service anticipates the following sales revenue over a five-month period: The company's sales are 40% cash and 60% credit.
givi [52]

Answer:

I looked up the missing information, hopefully it's the same as your question. If not you can adjust the answer.

Its collection history indicates that credit sales are collected as follows:

  • 25% in the month of the sale
  • 50% in the month after the sale
  • 15% two months after the sale
  • 10% are never collected

sales revenue:

  • November $16,100
  • December $10,400
  • January $15,600
  • February $12,400
  • March  $14,400

                                          Jewel Services

                                   Cash Collections budget

                For the months of January, February, and March

cash collected from sales      January    February    March          Quarter

from November sales             $2,415                                              $2,415

from December sales             $5,200     $1,560                            $6,760

from January sales                 $3,900     $7,800       $2,340        $14,040

from February sales                                 $3,100       $6,200        $9,300

<u>from March sales                                                        $3,600        $3,600 </u>

Total                                        $11,515      $12,460     $12,140        $36,115

6 0
3 years ago
Other questions:
  • holton is the manager at a small restaurant. What can he do to ensure the workplace offers a safe environment for employees?
    9·2 answers
  • Suppose the civilian non-institutionalized working age population is 35.9 million in Laborland.
    6·1 answer
  • When you introduce your product to a focus group or a small geographical location, which activity does it signify?
    6·1 answer
  • I need free pantyhose
    10·2 answers
  • Inflation occurs when the money supply in a country increases faster than output increases. True or False
    13·1 answer
  • If net operating income is $34,000, average operating assets are $204,000, and the minimum required rate of return is 15%, what
    11·1 answer
  • 3. From the following, select the tax that is
    7·1 answer
  • Free pts <br>have a nice day​
    8·2 answers
  • Services from health care to education are provided to people by the government. This is an example of _____.
    11·1 answer
  • Kendra sells gourmet boxes of cookies. One box of cookies costs Kendra $6.75 to produce. She sells her boxes of cookies for $10.
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!