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Firlakuza [10]
3 years ago
7

If a firm has high current and quick ratios, this always is a good indication that a firm is managing its liquidity position wel

l. True False
Business
1 answer:
ohaa [14]3 years ago
4 0

Answer:

True

Explanation:

Current and Quick ratio shows the liquidity position of the company. It shows that how much assets are available to company to pay off its liabilities if it becomes due in short period of time. High current and quick ratio make the company strong and it will have enough asset to deal with its obligation than with low current and quick ratio.

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Which of following is a TRUE statement about inventory within a continuous review system?
garri49 [273]

Answer:

c. When ordering or setup costs increase, Economic Order Quantity increases

Explanation:

In inventory there are two types of review systems used to replenish stock, the periodic inventory and continuous inventory.

Continuous inventory involves ordering the same quantity of a good in each order. However the rate at which goods are replenished varies based on monitoring of level of goods. Orders are made when inventory gets to a certain level.

In this instance when there is an increase in ordering or setup there needs to be allocation of a higher amount for orders. The additional cost is added to the economic order quantity

5 0
3 years ago
Cardinal Industries purchased a generator that cost $11,000. It has an estimated life of five years and a residual value of $1,0
gogolik [260]

Answer:

2080 dollars

Explanation:

Given that Cardinal Industries purchased a generator that cost $11,000

cost of generator = 11000

Estimated life       = 5 years

Residual value     =1000

Hours                    =5000

Depreciation per unit hour = (Cost - residual value)/total lifetime hours

=\frac{11000-1000}{5000} \\=2

For first year the generator was used for 1,040 hours.

Hence depreciation to be charged in I year

= 1040(2)\\=2080

answer is 2080 dollars.

3 0
3 years ago
Who is most likely to benefit when the Canadian dollar depreciates against the euro? A. Foreign sellers to Canadian buyers B. Ca
mariarad [96]

Answer:

A

Explanation:

When the Canadian dollar depreciates against the euro, the value of the Canadian dollar falls relative to the Euro.

For example, the exchange rate before the depreciation is 40 Canadian dollar / Euro. After the depreciation, it is 80 Canadian dollars / Euro.

Goods become more expensive for Canadian buyers of foreign goods. For example, a foreign good costs 160 Euros. Before the depreciation the good would cost (160 x 40) = 6400 Canadian dollars. After the depreciation, it would cost, 12,800 Canadian dollars.

Canadian sellers to foreign buyers don't benefit from the depreciation. Assume a local good costs 40 Canadian dollars. foreigners would pay 1 Euro for the good before depreciation. After depreciation, foreigners would pay 0.5 Euros for the good

6 0
3 years ago
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