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
True or false? West African coastal countries have borrowed money from the World Bank and the International Monetary Fund.
Phantasy [73]
True, West African countries borrowed money fro the World Bank and the International Monetary Fund. West African countries are developing economies which similar to other developing economies in Africa and the rest of the world have taken loans and development funds from the IMF and the World Bank. 
4 0
3 years ago
Read 2 more answers
Paige is thinking about discontinuing a software program her company
Flura [38]

Answer:

C. Her company may still need to provide customer service to existing customers.

Explanation:

Apex

8 0
2 years ago
If the government increases taxes in response to an inflation, the government is engaging in what economists call?
olchik [2.2K]

Answer:

fiscal policy

Explanation:

Fiscal policy is the policy which is used by the government the tax rate and government spending economy to analyse the economy of the nation

It is a technique through which a national bank impacts a country's cash supply.

The instances of fiscal policy are tax reductions and expanded government spending. Both of these strategies are proposed to build total interest while adding to shortages or drawing down of spending plan surpluses.

4 0
3 years ago
Read 2 more answers
X Company and Y Company, operating on opposite sides of the country, manufacture equipment that is virtually identical except fo
Makovka662 [10]

Answer:

$14,000

Explanation:

Company X                                               Company Y

cost per equipment $75,000                  cost per equipment $65,000

sales price $105,000                                sales price $91,000

Both companies sold one unit and they exchanged clients in order to reduce shipping cost:

company X income = $105,000 (selling price) - $75,000 (COGS) + $14,000 (money received from company Y) = $44,000

company Y's income = $91,000 (selling price) - $65,000 (COGS) - $14,000 (money given to company X) = $12,000

This exchange resulted in company X's income increasing by $14,000, while company Y's income decreased by $14,000

6 0
3 years ago
Your friend wants to open a clothing shop. A necessary capital resource is a (5 points)
jok3333 [9.3K]
 A necessary capital resource is a A place to open the shop. And <span>license to conduct business is also important.</span>
6 0
3 years ago
Other questions:
  • company has bonds outstanding with a par value of $110,000. The unamortized premium on these bonds is $2,585. If the company ret
    10·1 answer
  • When determining the account balance for a particular account (ex. Accounts Receivable) in order to prepare a trial balance, the
    10·1 answer
  • Jose goes to an all-you-can-eat buffet at a Chinese restaurant and consumes three plates of food. He does not go back for a four
    8·1 answer
  • Calculate gross profit ratio and cost of goods sold Refer to the consolidated statements of earnings in the Campbell Soup Compan
    9·1 answer
  • A synchronous manufacturing system does not have excess capacity throughout the system, except for the bottleneck.
    11·1 answer
  • The marketing manager for an automobile manufacturer is interested in determining the proportion of new compact-car owners who w
    13·1 answer
  • Company A has been experiencing lost sales and high returns recently, so they have decided to undertake a comprehensive quality
    6·1 answer
  • Nordstrom, Inc. operates department stores in numerous states. Suppose selected financial statement data (in millions) for 2020
    5·1 answer
  • The following labor standards have been established for a particular product: Standard labor hours per unit of output 4.3 hours
    9·1 answer
  • Foundation for motivation
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!