Option C -Operating Cash Flow = Current Liabilities / Operating Cash Flow s not a correct way of calculating a liquidity ratio.
Liquidity ratios are a measure of a company's ability to settle its short-term payments. A company has the ability to quickly exchange its revenues and is using them to pay his obligations is dictated by its liquidity ratios. The potential to pay back debts and keep engaged on installments is simpler the better the ratio. Since this can vary by industry, and current ratio of 1.0 usually signals that a group's debt do not exceeding its liquid assets. In enterprises in which there is a quicker product changeover and/or shorter payment cycles, ratings below 1.0 may be acceptable.
Absolute liquidity ratio =(Cash + Marketable Securities)÷ Current Liability.
Learn more about Liquidity ratios here:
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Answer:
The answer is: The excise tax on cola beverages is $2 per case.
Explanation:
Excise taxes are taxes levied on certain goods or services.
In this case the price of cola beverages is $4 per case, since excise taxes are included in the price of the product, then the excise tax on cola beverages = price paid by consumers - price received by producers = $4 - $2 = $2
Accurate measurement is VERY important in banking because banking is all about exact calculations. If one balance measure is off, the entire bank report will not be acurate. One little mess up and the entire calculation goes wrong.
Answer:
b. Net Purchases + beginning inventory - ending inventory.
Explanation:
The formula to compute the cost of goods sold is shown below:
Cost of good sold = Beginning inventory + net purchase - ending inventory
We simply added the net purchase and deduct the ending inventory to the beginning inventory so that the correct value can be determined
It records that cost which is directly related to the product that means it excludes the indirect cost
I am not entirely sure what a performance test is, but I can help with the others. A polygraph is a machine, used usually if you are in legal trouble, to see if you are lying. While results aren't 100% accurate, you typically can get a gage for if someone committed a crime. They are also rarely used for interviews, some companies want to see if people are lying on their resumes. Drug tests are tests that are given to most people with a job, and especially sports players. Companies especially like to test people for drugs, to see if they might be on an illegal drug that could cause them to work less efficiently. It also is a liability issue for the company if an employee is on an illegal drug. Drug tests are typically done at a lab, and you usually have to pee in a cup and have it get tested.