Answer: A limited liability company
Explanation:
A limited liability company is a company in which the liability of members is limited to the amount of money invested in the business.
The characteristics of a limited liability company includes:
1. Limited liability - the liability of members is limited to the amount invested by members.
2. Members have the option of managing the company by themselves or employing managers.
3. The Limited liability company is a separate legal entity from its members.
Answer:
The correct answer is option c) payments are made by check. Control of cash disbursement is generally more effective when payments are made by check..
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Answer:
Current ratio is 2.5:1
Quick ratio 1.9:1
Explanation:
Current ratio =current assets/current laibilities:1
current assets =cash+marketable securities+accounts receivables+inventory
current assets=$225000+$115,000+$112000+$158,000
current assets =$610,000
current liabilities=accounts payable=$244,000
Current ratio=610000/244000
current ratio=2.5
:1
quick ratio =(current assets-inventory)/current liabilities:1
quick ratio=(610000-158000)/244000
=1.9:1
The current ratio suggests the company has liquid resources that is more than double of current liabilities which can used in discharging debt obligations in the normal course of business
Quick ratio excludes inventory from the ratio since inventory is most difficult item to convert to cash
Answer:
Option C) Decrease in Total Assets , and No Effect on Equity
Explanation:
Telephone bill it's a Current Liability , if you decide to pay it as soon as you receive it you have to use Cash which is part of your Current Asset, so the impact it's a decreased in your Current Assets through the Cash component.
This movement has no impact in the Sotckholder Equity.
