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
torisob [31]
4 years ago
10

North Bank is analyzing Belle Corp.'s financial statements for a possible extension of credit. Belle's quick ratio is significan

tly better than the industry average. Which one of the following factors should North consider as a possible limitation of using this ratio when evaluating Belle's creditworthiness?
A. Fluctuating market prices of short-term investments may adversely affect the ratio.
B. Increasing market prices for Belle's inventory may adversely affect the ratio.
C. Belle may need to sell its available-for-sale investments to meet its current obligations.
D. Belle may need to liquidate its inventory to meet its long-term obligations.
Business
1 answer:
Arlecino [84]4 years ago
4 0

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.

You might be interested in
Aaron purchased footballs from Matthew for $370. Matthew had purchased the footballs from Tom by providing Tom with a bad check.
LenaWriter [7]

Answer:

The principle in Law 'Nemo dat quod non habet' states that an individual connot give what he does not have

Indeed Tom can rescind the contract with Matthew as he possesses voidable title to the balls

Explanation:

Until consideration has moved from Matthew to Tom the validity of the agreement/Contract remains inconclusive.

Considering his Account is not funded means he has no valid title to the Balls, he is merely in possession of the Balls but not the Owner.

Tom can sue demanding a return of the Balls irrespective of Matthew having sold them to Aaron.

Another illustration could be given of a thief who sells off a property. Inspite of the Buyer being unaware, because the thief has a voidable title it makes the transaction invalid.

8 0
4 years ago
You call a coworker to see if they can come help you solve a problem<br>​
Sholpan [36]
Yes/true/correct/not false
8 0
4 years ago
Kathy​ Champe, a public relations specialist for a regional chain of​ pharmacies, regularly contacts members of the local an
WITCHER [35]

Answer:

press relations

Explanation:

According to my research on public relations functions, I can say that based on the information provided within the question this is an example of the press relations function. This function refers to forming and maintaining a good relationship between a business/company/organization and the press/media by communicating regularly and providing information, help and access where needed, such community events and fundraisers.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

5 0
3 years ago
Salon Du Jour offers special combination packages at a reduced price. Separately, a haircut is $30 and a conditioning treatment
Alekssandra [29.7K]

Answer:

Product Bundle

Explanation:

Product bundle is the term which is defined as where the several individual  services or goods which are sold to the consumers in a single combined package. And the few retailers only sell the items as a product bundle not individually.

In this scenario, the Salon offers the combined package of $50 and the individually the prices are different . So, it will be called or known as the Product bundle.

7 0
4 years ago
Theory X, Theory Y and Theory Z underly the following sequence of schools: _________
tankabanditka [31]

Answer:

d. Scientific Management, Human Relations, Covenantal

Explanation:

Theory X treats employees as people who only work because they are paid, and that is there only motivation.

Theory Y starts to explore other employee motivations and how they influence workers' performance.

Theory Z is the newest of these theories and it focuses on empowering employees, making them feel important, etc.

4 0
3 years ago
Other questions:
  • Anstead Co. is experiencing a decrease in sales and operating income for the fiscal year ending October 31, 2014. Ryan Frazier,
    13·1 answer
  • Vaughn Manufacturing has several outdated computers that cost a total of $17800 and could be sold as scrap for $5000. They could
    5·1 answer
  • The owner of a chain of juice stores wants to compare the profits earned from two of his stores. The alternative hypothesis is,
    15·1 answer
  • Which type of writing is best for business letters?
    13·1 answer
  • When Maricela looked in her closet and said, "I don't have anything to wear to the party this weekend," she seems to be in which
    7·1 answer
  • Define risk economics. ​
    10·2 answers
  • If 15,000 fans bought tickets totaling $450,000, what was the average price per ticket?
    10·1 answer
  • Although the Fed has very strong influence over the money supply, it does not have complete control a.Because the Fed has no ide
    13·1 answer
  • Customer experience size is not good enough
    11·1 answer
  • Debra spends 22 hours a week studying in the gatton building. Debra currently has a 3. 7 gpa. If debra reduced her time studying
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!