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3 years ago

The ratios that are used to determine a company's short-term debt paying ability are

Business

1 answer:

11Alexandr11 [23.1K]3 years ago

4 0

Answer:

d. current ratio, acid-test ratio, accounts receivable turnover, and inventory turnover.

Explanation:

For determining the company short term debt paying ability, the liquidity ratios are used i.e current ratio, acid test ratio, account receivable turnover and inventory ratio

By using this ratios the company could able to analyze their liquidity that means they have the sufficient balance to pay off the short term debt or liability i.e current liabilities moreover the time period is maximum 1 year for paying off the short term liabilities

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During periods of economic growth, consumers buy more goods and services. This causes businesses to produce _____ goods and serv

fomenos

More, hope this helps!

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3 years ago

Read 2 more answers

In February, a homeowner contracted with a general contractor to have a basement storage space converted to a sauna, but never p

AURORKA [14]

Answer:

Generally real estate liens are prioritized following a temporal order, from first to last. This applies to all liens except taxes. Taxes are always first and they are collected before any other lien in the event of a foreclosure.

In this case, the following priority would go to the mechanic's lien from the the general contractor (as a result from court order), then the mortgage, and finally the other creditors.

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3 years ago

What is the rate of interest on a loan of $2,000, for 284 days, if the amount of interest is $93.37, using the exact interest me

vesna_86 [32]

Exact interest method is using 365 days instead of 360.

We are going to use the formula: I = Prt, we will derived the formula of rate.

r = I /Pt would be our formula, plugging in our amounts.

r = 93.37 / 2000 / (284/365)

= 93.37 / 2000 (0.7781)

= 93.37 / 1556.1643

= 0.06 or 6% when converted to percent.

To check:

I = Prt

= 2000 x 0.06 x 284/365

= 120 x 0.7781

= 93.37

4 0

4 years ago

Which of the following statements is FALSE? A. According to the constant dividend growth model, the value of the firm depends

Vedmedyk [2.9K]

A. According to the constant dividend growth model, the value of the firm depends on the current dividend level, divided by the equity cost of capital plus the grow rate.

This is the false statement.

Explanation:

The fair value of stock can be calculated using the dividend growth model. While calculating the value of the stock, the growth of the dividends should be considered either in a stable rate or at a different rate during the period at hand.

The dividend growth model is also known as a valuation model as it is used to achieve the value of the stock.

Equity cost is the cost that the firm owes to the equity investors to compensate the risk of their investment.

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3 years ago

Mike Greenberg opened Cheyenne Window Washing Inc. on July 1, 2022. During July, the following transactions were completed.

Pavel [41]

Answer:

Cash (Dr.) $9.800

Common Stock (Cr.) $9,800

Truck (Dr.) $6,560

Cash (Cr.) $1,640

Accounts Payable -Truck (Cr.) $4,920

Cleaning Supplies (Dr.) $740

Accounts Payable (Cr.) $740

Prepaid Insurance (Dr.) $1,440

Cash (Cr.) $1,440

Accounts Receivable (Dr.) $3,030

Service Revenue (Dr.) $3,030

Accounts Payable - Truck (Dr.) $820

Accounts Payable - Supplies (Dr.) $410

Cash (Cr.) $1,230

Cash (Dr.) $1,310

Accounts Receivable (Cr.) $1,310

Maintenance Expense Truck (Dr.) $240

Cash (Cr.) $240

Dividend paid (Dr.) $490

Cash (Cr.) $490

Explanation:

1) Accounts Receivable (Dr.) $1,750

Service Revenue (Cr.) $1,750

2) Depreciation expense (Dr.) $202

Accumulated Depreciation (Cr.) $202

3) Insurance Expense (Dr.) $120

Prepaid Insurance (Cr.) $120

4) Ending Inventory (Dr.) $320

Cleaning Supplies (Cr.) $320

5) Salaries Expense (Dr.) $415

Salaries Payable (Cr.) $415

4 0

3 years ago