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kondor19780726 [428]
3 years ago
6

Consider the relative liquidity of the following assets: Assets 1. A $5 bill 2. The funds in a savings account 3. A boat you own

4. A bond issued by a publicly traded company Select the assets in order of their liquidity, from most liquid to least liquid.
Business
1 answer:
Karo-lina-s [1.5K]3 years ago
8 0

Answer:

1, 2, 4, 3

Explanation:

To begin with, liquidity is simply defined as the relative ease and/or quickness an asset can be converted to cash, or any other potent medium of exchange.

Now, from the question, we are given the task to rank in order of liquidity.

Option 1 ranks as the most liquid. This is simply because it's already denominated as cash, and a potent means of exchange. Thus, it's readily available.

Option 2 ranks as the second most liquid. Although we are not given the amount involved in the saving account, the most defining feature here is that the saving account is already denominated in cash. It would therefore only takes few moments of processing to retrieve the cash. It ranks as the second most liquid.

Option 4 ranks as the second least liquid. A bond is a debt instrument a company uses to raise finance. A holder of such instrument is called a bondholder. This exercise is usually handled by a broker - a specialist skilled in the procedures. Thus, when an individual subscribe for a bond of a traded company, the processes may be complicated and and complex for some. Hence, it takes time - days or even weeks, and the eventual denomination of the fund into the requisite accounts.

A boat I own is the least liquid. This is simply because it could take days, weeks and even months to find a serious and interested buyer. Negotiations and all could also dictate if the cash receipts is also feasible. It ranks as the least liquid.

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Environmental scanning is the act of analyzing the critical external contingencies and trends facing an organization in terms of
alekssr [168]

Answer:

The correct answer is the option B: economic conditions, competitors and customers.

Explanation:

To begin with, the term of <em>environmental scanning</em> refers to the action of analyzing the forces, both internal and external, whose actions affect the organization in its whole and may give the company opportunities or threats, sthrengths or weaknesses. Moreover, when refering to the external part of the analysis the most important groups to have in mind are those outside the organization and that it may not take control over decisions directly. Those items or groups are: <u>the competitors, the customers, economic conditions</u>, the government, market suppliers, intermediaries and more.

5 0
3 years ago
The normal-form game box below outlines a generic game for two players to illustrate basic principles. Each player has two strat
tatiyna

Answer:

1. c) b>d

d) c>g

2. No dominant strategy equilibrium is also a Nash equilibrium.

Explanation:

Payoff matrix are  used in business as it represent the possible outcomes of the decisions made. In the given scenario player 1 and player 2 have different outcomes based on the game matrix. The player 1 will get best possible payoff when he falls in Top Left matrix. This is dominant strategy which must be Nash equilibrium.

5 0
3 years ago
Selected data (in thousands) derived from the income statement and balance sheet of National Beverage Co. for a recent year are
ss7ja [257]

Answer and Explanation:

The preparation of the cash flow statement is presented below:        

Cash flow from operating activities

Net income $49,311

Less: Gain on disposal of property -$1,188

Add: Depreciation expense $11,580

Add:  Other items involving non-cash expenses $1,383

Less: Increase in accounts receivable -$1,746

Add: Decrease in inventory $990

Less: Increase in prepaid expenses -$605

Less: Decrease in accounts payable -$710

Less:  Decrease in accrued and other current liabilities -995

Cash flow provided by operating activities $58,020

b.

Amortization of intangible assets  : Added

Decrease in accounts payable  : Decrease

Decrease in accounts receivable  : Added

Decrease in accrued and other current liabilities    : Decrease

Decrease in inventory  : Added

Decrease in prepaid expenses  : Added

Depreciation  : Added

Gain on disposal of property    : Decrease

Increase in accounts payable  : Added

Increase in accrued and other current liabilities  : Added

Increase in accounts receivable    : Decrease

Increase in inventory    : Decrease

Increase in prepaid expenses    : Decrease

Losses on disposal of property: Added

Other items involving noncash expenses  : added

4 0
4 years ago
Ellis Corporation is a manufacturer that uses job-order costing. The company has supplied the following data for the just comple
shusha [124]

Answer:

It is the Cost of Goods Manufactured that should be transferred to the Finished Goods account. As both of them are asset account, adding to the Finished Goods account would debit it and taking from the Work in Process account would credit it.

Date                 Account Title                                          Debit                Credit

XX-XX-XXX     Finished Goods                                $1,469,000

                        Work in Process                                                       $1,469,000

4 0
3 years ago
Forchen, Inc., provided the following information for two of its divisions for last year:
Ede4ka [16]

Answer:

Forchen, Inc.

a. Residual income for the Small Appliances Division:

$2,218,880

b. Residual income for the Cleaning Products Division:

$788,800

Explanation:

a) Data and Calculations:

                                                 Small Appliances     Cleaning Products

                                                         Division                    Division

Sales                                           $34,670,000              $31,320,000

Operating income                          2,773,600                  1,252,800

Operating assets, January 1         6,394,000                 5,600,000

Operating assets, December 31   7,474,000                 6,000,000

Average operating assets            6,934,000                 5,800,000

Rate of return (8%)                           554,720                    464,000

Residual income                            2,218,880                     788,800

b) The rate of return of 8% is computed on the average operating assets.  The residual income is the difference between the operating income and the minimum rate of return.

3 0
3 years ago
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