Answer:
The current ratio reflects existing cash as well as amounts to be converted to cash in the normal operating cycle.
Explanation:
As we know that
There are two liquidity ratios which is current ratio and quick ratio
The formula to compute each one is shown below:
Current ratio = Current assets ÷ Current liabilities
And, the quick ratio = Quick assets ÷ current liabilities
where,
Quick ratio = Current assets - inventory - prepaid expenses
By considering the two above ratios we could find the liquidity position of the ratio but the current ratio is the best as it includes all the items i,e to be required for it
Answer:
The correct answer is option A.
Explanation:
The constant returns to scale refer to the situation when a proportionate change in the input causes an equal proportionate change in the output level.
In this situation, the average total cost which is the ratio of the total cost of production and quantity of output produced remains the same.
The average total cost curve is a horizontal line when the firm experiences constant returns to scale.
Answer: Threat
Explanation:<em> In simple words, threats refers to a factor or element which belongs to an external environment and has the capability to damage the operations of the organisation. </em>
<em>In the given case, Brick and mortar are noticing that their customers are shifting to online shopping sights and their shop has been used as a place to experience the physical attributes before buying it. </em>
<em>Hence from the above we can conclude that the given case depicts threat. </em>
Answer:
Cash $892,500 (debit)
Common Stock $17,500 (credit)
Share Premium $875,000 (credit)
Explanation:
For par value shares, any price paid above the par value on stock issued is accounted for in the Share Premium Reserve.
Note from this question $25 is paid over and above the par value of $0.25, thus it is accounted in share premium reserve.
