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tino4ka555 [31]
3 years ago
8

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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Rowland & Sons Air Transport Service, Inc., has been in operation for three years. The following transactions occurred in Fe
dedylja [7]

Answer:

Explanation:

Feb. 1

prepaid rent   200

           Cash           200

To record the advance rent payment

Feb. 4

Cash  800

   Advance liability 800

To record received for future supplies

Feb. 7

Cash 900

     Contract liability 900

Payment for the service to be provided

Feb. 10

Advance wages      1200

                Cash              1200

Advance wages payment to pilot

Feb. 14

Adv to Advertise  100

      Cash                       100

Advance payment for advertisement expense.

Feb. 18

Cash  795

Account receiveable 1710

                     Revenue                2510

To record the accrued revenue

Feb. 25

inventory  1730

  Account payable 1730

purchases on credit

3 0
3 years ago
Adler Company is considering developing a new product. The company has gathered the following information on this product. Expec
MrRissso [65]

Answer:

markup 200% over cost

selling price 75 dollars

Explanation:

investment 500,000

return on investment : 10%

500,000 x 10% = 50,000

units producted: 1,000

markup per unit: 50,000 / 1,000 = 50 dollar

the markup will be: 25 * X = 50

X = 2 = 200%

selling price: 25  + 50 = 75

75

6 0
3 years ago
Following are the transactions of a new company called Pose-for-Pics
Assoli18 [71]

Answer:

Pose-for-Pics

1. T-accounts:

Cash

Date         Accounts Titles            Debit      Credit

Aug. 1      Common stock           $6,500

Aug. 2     Prepaid Insurance                       $2,100

Aug. 5     Office supplies                                 880

Aug. 20   Photography Fees        3,331

Aug. 31    Utilities                                             675

Aug. 31    Balance                                       $6,176

Common Stock

Date         Accounts Titles            Debit      Credit

Aug. 1       Cash                                           $6,500

Aug. 1       Photography Equipment           33,500

Aug. 31     Balance                       $40,000

Photography Equipment

Date         Accounts Titles            Debit      Credit

Aug. 1      Common stock           $33,500

Prepaid Insurance

Date         Accounts Titles            Debit      Credit

Aug. 2      Cash                             $2,100

Office Supplies

Date         Accounts Titles            Debit      Credit

Aug. 4      Cash                                $880

Photography Fees

Date         Accounts Titles            Debit      Credit

Aug. 20    Cash                                             $3,331

Utilities

Date         Accounts Titles            Debit      Credit

Aug. 31     Cash                             $675

2. Pose-for-Pics

Trial Balance

As of August 31:

Accounts Titles            Debit      Credit

Cash                           $6,176

Common stock                          $40,000

Equipment                33,500

Prepaid Insurance      2,100

Office supplies             880

Photography Fees                        3,331

Utilities expense          675

Totals                    $43,331      $43,331

Explanation:

T-accounts are the general ledger accounts where the transactions of Pose-for-Pics are summarized.  From the T-accounts, the Trial Balance can be prepared to show the list of account balances from the general ledger.  The Trial Balance forms the first basis for the preparation of financial statements after adjustments have been made for accruals, prepayments, deferred revenue, and depreciation expenses.  The Trial Balance may also show that the accounts have been correctly posted with corresponding debit and credit entries.

6 0
3 years ago
The skills, abilities and other characteristics needed to perform a job are detailed in a select one:
anzhelika [568]
The skills and abilities is called A. Job description
8 0
3 years ago
41 had investments in stock funds 91 had investments in bond funds 60 had investments in money market funds 47 had investments i
Evgesh-ka [11]

Answer:

The answer is "22 and 80"

Explanation:

The important part is to understand how the Venn diagram can assist you with your numbers.

You cannot draw this one, and you can create one as follows:

the 3 sorts of funding, then make your way back thru the list

this is the figure in the center - "22 had all 3 funds"

where the four dimensions meet. In the next three statements, you'll be able to:

Work out where 2 circles connect (remember all 22 of those circles are connected).

That's because the numerals have been already placed throughout the center zone.

bond & money market solenoid valves at a ratio of 36-22=14

36-22=14 as to where the corporate market and the term deposit intersect

47-22=25 as to where equities and bonds connect You can use the top 3 statements to work out all the values in a table.

(Set of) just one circle (circle)

for stock the number is 141-(22+14+25)=80

for the bond, the number is91-(22+14+25)=30

for the money market, the number is 60-(22+14+14)=10

(universal set) Lastly, get the number that goes into the rectangle.

\to 200-(80+30+10+25+14+14+22)=5

a) 22\\b) 80

7 0
3 years ago
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