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3 years ago

What is the defintion of liquidity

Business

2 answers:

kodGreya [7K]3 years ago

8 0

Answer:

Financial liquidity refers to how easily assets can be converted into cash. Assets like stocks and bonds are very liquid since they can be converted to cash within days

Explanation:

Serga [27]3 years ago

8 0

Answer:

Liquidity is a market's feature whereby an individual or firm can quickly purchase or sell an asset without causing a drastic change in the asset's price

Explanation:

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Chromatics, Inc., produces novelty nail polishes. Each bottle sells for 3.60. Variable unit costs are as follows:

devlian [24]

Answer:

Margin of safety= 9,000 units

Explanation:

Giving the following information:

Each bottle sells for 3.60.

Variable unit costs are as follows:

Acrylic base- .75

Pigments- .38

Other ingredients- .35

Bottle, packing material- 1.15

Selling commission- .25

Fixed overhead costs are 12000 per year. Fixed selling and administrative costs are 6720 per year. Chromatics sold 35000 bottles last year.

First, we need to calculate the variable cost per unit and total fixed costs:

Unitary variable cost= 0.75 + 0.38 + 0.35 + 1.15 + 0.25= $2.88

Total fixed costs= fixed overhead + fixed selling and administrative= 12,000 + 6,720= 18,720

Now, we can calculate the break-even point in units:

Break-even point= fixed costs/ contribution margin

Break-even point= 18,720 / (3.6 - 2.88)= 26,000 units

Margin of safety ratio= (current sales level - break-even point)

Margin of safety ratio= 35,000 - 26,000= 9,000 units

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3 years ago

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3 years ago

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Listed below are ten independent situations. For each situation indicate (by letter) whether it will create a deferred tax asset

valkas [14]

Answer:

1. Advance payments on insurance, deductible when paid.

Indication: Deferred tax liability (L)

2. Estimated warranty costs; tax deductible when paid.

Indication: Deferred tax asset (A)

3. Rent revenue collected in advance; cash basis for tax purposes.

Indication: Deferred tax asset (A)

4. Interest received from investments in municipal governmental bonds.

Indication: Neither (N)

5. Prepaid expenses, tax deductible when paid.

Indication: Deferred tax liability (L)

6. Net operating loss carryforward.

Indication: Deferred tax asset (A)

7. Net operating loss carryback.

Indication: Neither (N)

8. Straight-line depreciation for financial reporting; MACRS for tax purposes.

Indication: Deferred tax liability (L)

9. Organization costs expensed when incurred; tax deductible over 15 years.

Indication: Deferred tax asset (A)

10. Life insurance proceeds received upon the death of the company president.

Indication: Neither (N)

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3 years ago

If nothing is stated to the contrary in terms of an auction, an auction is presumed to be ________.

KATRIN_1 [288]

Answer: with reserve

Explanation: If nothing is stated to the contrary in terms of an auction,an auction is presumed to be ________.

A)non-binding

B)a quasi-contract

C)without reserve

D)with reserve

E)an implied-in-law contract

An auction is presumed to be with reserve if nothing is stated to the contrary (in terms of an auction). What this means is that the seller is merely expressing or showing his intent to receive offers. In contrast, however, if an auction is without reserve, the lowest bid must be accepted by the auctioneer but if it is with reserve, the auctioneer may refuse to sell the item if he is not satisfied with the size of the highest bid.

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3 years ago

Heidi Ganahl brings a personal approach to managerial decision making and problem solving. In which of the following stages woul

Troyanec [42]

Answer:

Generating alternatives

Explanation:

Brainstorming is a process of generating alternatives for a particular by coordination and communication of the issues with the team members.

Its the team leader's job to address the issues to the employees that this is the issue and this is the an solution option but we need an option which suits the organization i.e, the option possesses this this this features in it. So the stage that comes before evaluation of an option is generating alternatives. This also includes the writing down of ideas, suggestions and other sort of inclusion in the alternative.

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4 years ago

What is the defintion of liquidity ​

What is the defintion of liquidity