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
Serjik [45]
3 years ago
5

Assume a company's current ratio and acid-test ratio are less than 1.0 before it purchases inventory on credit. When it makes th

e purchase:
Business
1 answer:
I am Lyosha [343]3 years ago
7 0

Answer: b. Its quick ratio decreases.

Explanation:

The Quick ratio is calculated net of inventory to determine if a company can cover its current liabilities with its more liquid current assets. The formula is to subtract Inventory from the Current Assets and then divided that by the Currency liabilities.

The Quick ratio will be less than before because the number of current assets will not change but the amount of current liabilities will change as the goods were purchased on credit. With a larger denominator, the resultant ratio will be less than before.

You might be interested in
Describe the Allowance for Doubtful Accounts, account:1. What type of account is it? Contra Asset Account 2. What it’s normal ba
Airida [17]

Answer:

contra-assets account.

Credit balance

balance sheet

permanent account.

Explanation:

The allwoance is an account used to adjust accounts receivable to a net value therefore, it is used as contra-asset (to adjust an asset)

Therefore, as assets normal balance is debit a contra-assets in order to adjsut will use credit balance.

<em>Notice:</em> contra-assets decrease the net value of the assets They never increase it. If the princip0al asset increase then, the accounting would use the main asset account, not the contra-asset

Lastly, as it adjsut an asset it will be find in the balnce sheet or in the note to the balance sheet to disclosure the procedure to arrive to net accounts receivables

As it is find in the balance sheet is a permanent account His balance passes through the acouting cycles

3 0
2 years ago
Competitive advantage refers to:
True [87]

Answer:

d. refers to how a firm does something unique to create added value.

Explanation:

The competitive advantage is the advantage that is gained by the company over its competitors. It can be gained through various things like - reasonable product, best quality, and quantity, great services through which the customers of competitors could be the shift to the company.

The motive of this is to create some value added to the company products by considering the innovative ideas to attract the customers and maximize customer satisfaction that results to accomplish the company goals and objectives.

7 0
3 years ago
Assume the market basket contains 20X, 30Y, and 50Z. The current-year prices for goods X, Y, and Z are $2, $6, and $10, respecti
Aneli [31]

Answer:

CPI for the current year  = 200

Explanation:

Given;

Contents in market basket

20X, 30Y, and 50Z

The current-year prices for goods

X = $2

Y = $6

Z = $10

The base-year prices are

X = $1

Y = $3

Z = $5

Now,

Total cost of market basket in the current year

= ∑ (Quantity × Price)

= 20 × $2 + 30 × $6 + 50 × $10

= $40 + $180 + $500

= $720

Total cost of market basket in the base year

= ∑ (Quantity × Price)

= 20 × $1 + 30 × $3 + 50 × $5

= $20 + $90 + $250

= $360

also,

CPI for the current year = \frac{\textup{Cost of market basket at current year prices}}{\textup{Cost of market basket at base year prices}}\times100

or

CPI for the current year = \frac{\$720}{\$360}\times100

or

CPI for the current year = 200

8 0
3 years ago
How does Wanda's strategy of being a high-quality provider take advantage of the shifts in consumer demand for healthy dog treat
Katen [24]

Answer:

In the description section underneath the overview per the particular context is illustrated.

Explanation:

  • Wanda's philosophy about becoming a distributer of enhance performance resulted in increased market demand due to consumer perception that her goods are stronger and therefore more advantageous.
  • This contributes to consumption growth, moving the consumer surplus towards Wanda's goods to the right, contributing towards increased costs.
  • One more scenario maybe though in the immediate future, her Wanda commodities demonstrate no positive effects, resulting throughout a decline in terms of trade.

Throughout this situation, Wanda might answer by genuinely changing the productivity of the latter's goods including displaying a certain clinical significance to obtain a competitive advantage for customers.

7 0
2 years ago
True/False
Eddi Din [679]

Answer:

False

Explanation:

Have you ever heard the phrase "there are lies, [email protected] lies and statistics"?

The only way that a statistical study be 100% confident is that it involves everyone or everything. For example, if you want to carry on a study about how many US college students drive, in order to be 100% confident of the result, you would need to interview all the college students in the country.

7 0
3 years ago
Other questions:
  • What is budgeting time for a presentation?
    15·2 answers
  • Which of the following is true of a budget committee? a.It ensures that shareholders approve the budget. b.It takes care of the
    12·1 answer
  • Describe an example of an equity investment that can also produce income. (1-3 sentences)
    14·1 answer
  • Red Mountain, Inc. bonds have a face value of $1,000. The bonds carry a 7 percent coupon, pay interest semiannual, and mature in
    9·1 answer
  • During the Great Recession, a major financial crisis followed the collapse of housing prices, which led to ____. Multiple Choice
    5·2 answers
  • Consider two points on the PPF: point A, at which there are 50 apples and 40 pears, and point B, at which there are 46 apples an
    13·1 answer
  • On October 1, 2020 Bonita Industries issued 5%, 10-year bonds with a face value of $8090000 at 103. Interest is paid on October
    10·1 answer
  • Two firms, Boomburgs and ABC X-Plode, both sell the same fireworks bundle. If they sell their fireworks at the manufacturer's su
    11·1 answer
  • Which primary management responsibility includes the process of creating budgets?
    5·1 answer
  • If price paper spends an additional on advertising, sales volume should increase by units. what effect will this have on operati
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!