Answer: False
Explanation:
If Firm A's current ratio exceeds that of Firm B, it is still possible that B's quick ratio is larger than A's. If A's quick ratio is larger than B's however, then there is still a possibility that B's current ratio can be larger than A's.
The current ratio is the Current Assets divided by Current liabilities. The Quick ratio is Current Assets less inventory divided by Current liabilities.
B's current ratio can therefor be larger than A's if it has more inventory than A such that when we calculate the current ratio of B, the extra inventory would give it a higher current ratio than A.
Answer:
It is $9,000 (B)
Explanation:
Total paid dividends paid = $60,000
Return on Investment = $60,000 *15%
=$9,000.
Gaw Company investment in Trace Corporation will be treated as Investment Assets. In its book ,it can only recognize its share of dividend paid as return on investment.
Gaw Company cannot recognize its share of entire net income of Trace because it doesn't have controlling interest (i.e subsidiary) in the company neither does it have significant influence (i.e associate).
Answer:
This is the result of law of demand and elasticity of demand
Explanation:
The law of demand states that, other things remaining equal, the higher the price of a commodity, the lower the quantity demand of that commodity. Also, the observed goods in the question is a normal good because all normal goods obey the law of demand.
In addition, the price elasticity of demand is ELASTIC. This means the good is sensitive to price. A 1% increase in price will lead to a significant decrease in quantity demanded.
Also the income elasticity of demand is negative, meaning an increase income means the quantity demanded will decrease. This usually happens for inferior goods.
All these three points can cause it
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When calculating loan payments, to show a down payment toward the purchase of an asset, you must adjust the pv argument of the financial function.
What is pv argument?
The following arguments are used with the PV function rate: The interest rate per compounding period (necessary argument). The monthly interest rate on a loan with a 12% yearly interest rate and monthly payments would be 12% divided by 12 or 1%. The rate would then be 1%.
What is financial function?
In a firm, the functions used to obtain and manage financial resources in order to make a profit are referred to as the finance function. It generates pertinent financial resources and information, enhancing the effectiveness of other corporate operations and activities such as planning and decision-making.
Learn more about financial function: brainly.com/question/13169279
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