Answer:
c. Liquidity is the ability to convert assets to cash.
Explanation:
The company's level of liquidity deals with the company's level of cash which is usually held to meet current obligations.
The liquidity ratios are ratios that indicate how well and quickly a company can convert current assets into cash for the settlement of current liabilities.
Examples of liquidity ratios include current ratio, acid test/quick ratio , cash ratio and working capital ratio.
Answer:
$50,000
Explanation:
Estimated Cost of New Equipment = $500,000
Useful life in years = 5
Estimated Residual Value = $50,000
Expected New Cash Inflows over life of asset = $700,000
Annual depreciation expense = (Estimated Cost of New Equipment-Estimated Residual Value)/Useful life in years
= ($500,000 - $50,000) / 5
= $450,000 / 5
= $90,000
Average annual cash flow = Expected New Cash Inflows over life of asset/ Useful life in years
= $700,000/5
= $140,000
Average annual operating income = Average annual cash flow - Annual depreciation expense
= $140,000 - $90,000
= $50,000
Answer:
B. Journal entry-level
Explanation:
When using ABC, costs can be gathered at different levels. These levels are all of the following except "journal entry-level".
Therefore, costs can be gathered in Unit-level, Batch-level, Factory-level and even Product level.
Activity-Based Costing (ABC) is actually a costing method which tends to identify the activities that are carried out in organization and gives the costs of each activity to the products and services by what they actually consume.
Answer:
Explained below:
Explanation:
The basic similarity between TQM and Six Sigma quality-management techniques is that each one is a quality control approach and the basic difference between Six Sigma and TQM is the method that each one addresses quality check.TQM determines quality up to that level to which a product attends standards designed inside the company while Six Sigma trades the representation of quality to a relational one, maintaining that quality is based on the fewer number of lacks, which is necessary to be eliminated as much as attainable.
