Answer:
quick ratio = 0.72
Explanation:
given data
sales = $200 million
inventory turnover ratio = 5.0
current assets totaled = $100 million
current ratio = 1.2
solution
we get here quick ratio so here
inventory turnover ratio = 
...............1
put here value
inventory = 
inventory = 40
and
now we get current liability
current ratio = 
...............2
put here value
current liability = 
current liability = 83.33
and here quick ratio
quick ratio = 
.............3
quick ratio = 
quick ratio = 0.72
Answer:
personal care service workers because they know what they are doing and are good
Answer:
a. Historical Cost Principle = All the assets are recorded at their historical cost except the short term investments.
b. Full Disclosure Principle = All the details of the financial conditions of the company shall be stated properly.
c. Expense recognition principle = All expenses shall be recorded properly, and the cost of intangible assets shall be charged as expense during its useful life as amortisation expense.
d. Industry practice and fair value principle = As stated in (a) also, all short term investments shall be valued at fair value, as crops are their stock it is an industry practice in agricultural sector to record crops at fair value.
e. Economic Entity assumption = The owner of a business and that his business are two different legal persons, as income of business is computed and assessed separately and that the income of the owner is assessed separately.
f. Full Disclosure Principle = As there is a time gap in closing the actual financial year on 31 December and preparing the balance sheet, several transactions which are considered to be of important aspect for the people concerned are disclosed in the balance sheet as events after the balance sheet but before the reporting date.
g. Revenue Recognition principle = Revenue shall only be recorded when the entire risk is transferred to the buyer, and that only the payments are left to be received.
h. Full Disclosure Principle = Again all the financial statements shall disclose all the material facts as for investors interests the full disclosure principle is followed.
Answer:
Explanation:
The journal entry is shown below:
On March 9
Cash A/c Dr $300
To Account receivable - Green A/c $300
(Being the cash received is recorded)
For recording the cash receipts we debited the cash account and credited the account receivable account so that the correct posting can be done
All other information which is given is not relevant. Hence, ignored it
