Answer:
b) inventory is sold on credit.
Explanation:
Liquidity is defined as the a business to use its current assets to settle it's current liabilities.
This is calculated by using the working capital ratio.
Working capital ratio = Current assets ÷ Current liabilities.
Cash and inventory contribute to a business' liquidity.
When inventory is sold on credit, it does not result in immediate increase in cash as payment is in the future. So there is a reduction in the current asset of the company.
A reduction in the numerator of the working capital ratio results in lower value of the ratio (lower liquidity)
Apply for a credit-<span>builder loan \</span><span>Eliminate credit card balances.
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Answer:
$4,750
Explanation:
The computation of the depreciation expense is shown below:
= (Original cost - residual value) ÷ (useful life)
where,
Original cost = $18,000 + $500 + $2,500 = $21,000
And, the other items would remain same
Now put these values to the above formula
So, the value would be equal to
= ($21,000 - $2,000) ÷ (4 years)
= ($19,000) ÷ (4 years)
= $4,750
Answer:
I don't know this assignment but ask your teacher or get tutor.
Answer:
opportunity cost
Explanation:
The opportunity cost is the cost that is incurred for purchasing any other thing in place of one thing or we can say it is a sacrification done to purchase another thing
Here in the question it is mentioned that the Lil spent $120 for purchasing a new sweater instead of buying her finance textbooks also the cost of buying the sweater is known as the non doing textbooks cost
So here it is a opportunity cost
