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3 years ago

What is meant by liquidity?

Business

1 answer:

BartSMP [9]3 years ago

3 0

Answer:

Liquidity is the term which is stated as the degree to which the asset or the security of the company which can be quickly sold or bought in the market at the price which states its intrinsic value.

In general term, it is defined as ease of converting the asset or security into cash.

Explanation:

The most liquid asset is cash as it is universally accepted and considered to be the standard for liquidity because it is quickly and easily be convertible into other assets., while the other tangible assets like collectibles, real estate are all relatively illiquid.

Liquidity is of different types:

1. Market liquidity - Which refers to the extent of market like stock market, real estate market.

2. Accounting liquidity - It evaluates the ease with which the company or individual could meet or fulfill the financial obligations with the liquid assets which are available to them.

The accounting liquidity is measured with following ratios - Cash ratio, Quick ratio and Current ratio.

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Romain Surgical Hospital uses the direct method to allocate service department costs to operating departments. The hospital has

xenn [34]

Answer:

Romain Surgical Hospital

The total Surgery Department cost after service department allocations is closest to:

$ 565,970

Explanation:

a) Data and Calculations:

Service Department Operating Department

Information Technology Administration Surgery Recovery

Departmental costs $ 36,294 $ 36,282 $ 522,320 $ 720,360

Computer workstations 43 20 74 64

Employees 39 25 94 47

Information Technology costs allocated based on the Computer workstations $36,294/138 = $263 per workstation

Administration costs allocated based on the number of employees:

$36,282/141 = $257.32

Direct Allocation of Service Departments' Costs:

Service Department Operating Department

Information Technology Administration Surgery Recovery

Departmental costs $ 36,294 $ 36,282 $ 522,320 $ 720,360

Information Techn. (36,294) 0 19,462 16,832

Administration 0 (36,282) 24,188 12,094

Total costs 0 0 $ 565,970 $ 749,286

8 0

3 years ago

larisa86 [58]

Answer:

B. inspire a large number of people to help achieve organizational purposes.

Explanation:

Business strategy sets the overall direction for the business; it focuses on defining how a business would achieve its goals, objectives, and mission; as well as the funds and material resources required to implement or execute the business plan.

The recommended approach for strategy formulation by a leader is for him or her to inspire a large number of people to help achieve organizational purposes.

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3 years ago

What are the two types of discretionary fiscal policy

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Expansionary fiscal policy and contractionary fiscal policy

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3 years ago

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Identify each statement as either true or false. In the United States, banks keep the entire value of all customer deposits in t

hichkok12 [17]

Answer:

In the United States, banks keep the entire value of all customer deposits in the bank vault to meet customer withdrawals. FALSE.

Banks keep only a portion of the customer deposits in the bank vault. A small portion is kept with the Fed called the Reserve Requirement.

Banks typically loan out a portion of customer deposits. TRUE.

Banks only loan out the portion of customer deposits that they did not leave with the Fed.

Bank runs occur when many customers attempt to withdraw deposits from a bank at the same time and the bank is unable to pay all customer withdrawals. TRUE.

When too many people try to withdraw from a bank, the bank might not meet these obligations because they loaned out money to people and those people were not yet due to pay back. This is a bank run.

The Federal Deposit Insurance Corporation (FDIC) protects bank depositors from bank failure. TRUE.

The fractional reserve banking system requires all banks to keep the total value of customer deposits in their vaults to prevent bank runs. FALSE.

As explained in the first paragraph, the Fed requires that banks keep a portion of customer deposits with the Fed instead of the total value of customer deposits.

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3 years ago

Below is the complete list of accounts of Cobras Incorporated and the related balance at the end of March. All accounts have the

Nookie1986 [14]

The trial balances of the Cobras Incorporated as of the given date and position will tally a balance of $62,400.

<h3>What is a trial balance?</h3>

A table that contains all the debit and credit balances from all the ledger books of accounts of a business organization as on a given date is known as the trial balance of such organization.

The trial balance has been attached in the image for better understanding of the concept for the learners. Please refer to the same for more insights.

Hence, the concept of trial balance has been explained above.

Learn more about trial balance here:

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2 years ago