1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
mylen [45]
3 years ago
11

Liquidity ratios are used to measure a firm's ability to meet its obligations as they come due. Two of the most commonly used li

quidity ratios are the: (1) Current ratio and (2) Quick, or acid test, ratio. The current ratio is the most commonly used measure of solvency. Its equation is:
Business
1 answer:
marshall27 [118]3 years ago
3 0

Answer:

Current Ratio= Current Assets/ Current Liabilities

Explanation:

Current Ratio= Current Assets/ Current Liabilities

The current ratio is an important measure of a company's ability to pay its short term obligations. It is defined as current assets divided by current liabilities.

Current assets are cash and other resources that are expected to be sold or used within one year or the company's operating cycle , whichever is longer. Examples are cash, short term investments , accounts receivable, short term notes receivable, goods for sale ( called merchandise or inventory) and prepaid expenses. Prepaid expenses are usually listed last because they will not be converted to cash ( instead they are used).

Current liabilities are obligations due to be paid or settled within one year of operating cycle, whichever is longer. they are usually settled by paying out current assets such as cash . Current liabilities often include accounts payable , notes payable, wages payable, taxes payable, interest payable and unearned revenues. Also any portion of a long term liability due to be paid within one year or the operating cycle whichever is longer is a current liability.

You might be interested in
Jeff was in a department store standing near a clothing rack. Store security felt that he was acting suspiciously because he was
liraira [26]

Answer:

c. No; the facts of this situation do not provide reasonable grounds for a stop and search. Any attempt to do so by store security could result in a claim of false imprisonment.

Explanation:

According to the situation described in the question above, store security has no right to stop and search for Jeff. Therefore, the letter c is the most correct answer to this question.

Jeff's actions in the store do not provide sufficient reasons for there to be any kind of stop and research, as the facts in the situation do not provide enough information about an illegal act, so if store security forces a situation there could be legal damage to the store .

Therefore, it is essential that stores adopt a theft prevention strategy, with an effective security system and a team prepared to carry out correct approaches.

4 0
3 years ago
Macroeconomics, as opposed to microeconomics, includes the study of what determines the level of
yanalaym [24]
It includes the study of <span>employment in the economy.  


A macroeconomic factor is a factor that is relevant to an expansive economy at the provincial or national level and influences a huge populace instead of a couple of select people. Macroeconomic factors, for example, financial yield, joblessness, expansion, reserve funds, and speculation are key pointers of monetary execution and are nearly checked by governments, organizations, and customers.
</span>
4 0
2 years ago
Kate is a florist. Kate can arrange 20 bouquets per day. She is considering hiring her husband William to work for her. William
Leokris [45]

Answer:

38 bouquets

Explanation:

Based on the scenario being described within the question it can be said that if Kate hired her husband the total daily output would be 38 bouquets. This is a simple addition problem, since Kate's output is 20 bouquets and she is adding her Husband's output by hiring him then we simply add both of their outputs together to calculate their total combined output.

20 + 18 = 38

8 0
3 years ago
brutus co. exists in a world with taxes, but otherwise, capital markets are perfect. brutus co's debt cost of capital is 6%, its
FinnZ [79.3K]

Brutus co's leverage ratio is  40%

<h3>What leverage ratio?</h3>
  • The weighted average cost of capital (WACC), which includes common stock, preferred stock, bonds, and other types of debt, is the average after-tax cost of capital for a company. The WACC is the typical interest rate that a business anticipates paying to finance its assets.
  • The rate that a business is anticipated to charge on average to all of the holders of its securities in order to fund its

Cost of capital is 6%, its equity cost of capital is 11%, its weighted average cost of capital is 5.8% and its tax rate is 25%.

WACC = (5.8% x 25%) + (5.8% x 11% x 6%)

WACC = 3.973

WACC =   40%

Brutus co's leverage ratio is  40%

To learn more about WACC refer to:

brainly.com/question/25566972

#SPJ4

5 0
1 year ago
after the federal reserve buys bonds, the interest rate changes and aggregate expenditures change, the following will most likel
PIT_PIT [208]

The next thing to occur would be B. the price level in the economy will rise and the money demand will decrease

<h3>What is Interest Rate? </h3>

This refers to the amount of money that is added to be paid back on the settlement of a loan.

Hence, we can see that after the federal reserve buys bonds, the interest rate changes and aggregate expenditures change, thus will cause the price level in the economy will rise and the money demand will decrease

Read more about bonds here:

brainly.com/question/25965295

#SPJ11

6 0
1 year ago
Other questions:
  • There are four functions of management: planning, leading, organizing and controlling. The controlling function of management is
    14·1 answer
  • Hamilton company’s 8 percent coupon rate, quarterly payment, $1,000 par value bond, which matures in 20 years, currently sells a
    11·1 answer
  • Inattentive Driving. While cutting class and driving off campus to check on her new dress for the upcoming formal, Molly, a busy
    12·1 answer
  • Which part of the business plan is an analysis of your competition and the strategies you will use to earn and maintain a compet
    6·1 answer
  • Solve 2x + 0.03x = 255​
    7·1 answer
  • Firm Yahoo has attracted the attention of Firm Verizon because of its poor operating performance. Firm Verizon believes that the
    11·1 answer
  • A corporation declares a cash dividend on Friday, December 5th, payable to holders of record on Friday, December 19th. The local
    7·1 answer
  • Assume that a country with an open economy has a fixed exchange-rate system and that its currency is currently overvalued in the
    6·1 answer
  • Kira, the general manager of a travel agency, believes that her workers are responsible and capable, and that they can be truste
    5·1 answer
  • A popular football player at a college who is able to influence the buying decisions of fans would best be described as a(n) ___
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!