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Lady_Fox [76]
3 years ago
6

Which of the following will increase a company’s current liabilities? You may select more than one answer.

Business
1 answer:
vichka [17]3 years ago
8 0

Answer:

A company purchases inventory on credit.

Explanation:

Current liabilities are those that have to be settled within the fiscal year. The statement above does not specify if the credit has to be paid within the fiscal year, but most likely it has to, because inventories do not usually represent a long-term debt.

So under this sceneario, purchasing inventory on credit would represent an increase in the current liabilities of the firm.

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leverage is a financial technique used to determine to what extent fixed costs are used relative to variable costs.
Colt1911 [192]

Operating leverage is highest in groups that have a high share of constant working fees when it comes to variable operating costs.

Operating leverage is a value-accounting system that measures the diploma every day which a company or venture can increase working earnings by means of increasing sales.

Operating cost are the continuing expenses incurred from the everyday  of walking a enterprise. working expenses encompass each expenses of goods bought and different running costs.

Learn more about Operating costs here brainly.com/question/16650739

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8 0
2 years ago
he degree of leverage concept is designed to show how changes in sales affect earnings before interest and taxes (EBIT) and earn
Greeley [361]

Answer: 5

Explanation:

The measure used to evaluate a change in company 's operating income as a result of relative change in sales is called degree of operating leverage of the company. The operating leverage has two components that is fixed cost and variable cost.

.

Operating income of a company is denoted as EBIT, that is, earnings before interest and tax.

.

FORMULA = \frac{percentage\ change\ in\ EBIT}{percentage\ change\ in\ sales}

                = \frac{50}{10} = 5

note :-

percentage change in EBIT = \frac{1.5-1}{1}= 50%

3 0
4 years ago
How many courses do you need to take in University to become a teacher?
Amanda [17]
It all depends on the subject(s) that you will teach and at what level you will teach.
8 0
4 years ago
DuPont assigned groups comprised of chemists, sales and marketing executives, and regulatory specialists to sell an herbicide to
ICE Princess25 [194]

Answer:

D

Explanation:

Team selling

Team selling involves two or more departments of an organization coming and working together to make major profit in their business. For example, DuPont assigned groups comprised of chemists, sales and marketing executives, and regulatory specialists to sell an herbicide to corn growers. These group came together to make a profit of $57 million intheir firstmyear the effort is team selling.

4 0
3 years ago
Read 2 more answers
When preparing the statement of cash flows using the indirect​ method, a decrease in current liabilities is added to the net inc
sergij07 [2.7K]

Answer:

b) false

Explanation:

Operating activities: It contains those transactions that affect the after-net income working capital. It would subtract the increase in current assets and a decline in current liabilities, while adding the reduction in current assets and a rise in current liabilities.

Therefore, the given statement is false.  

7 0
3 years ago
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