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RideAnS [48]
3 years ago
6

An increase in current liabilities will have which one of the following effects, all else held constant? Assume all ratios have

positive values.
increase in the cash ratio
decrease in the quick ratio
increase in the current ratio
decrease in the cash coverage ratio
increase in the net working capital to total assets ratio
Business
1 answer:
sleet_krkn [62]3 years ago
8 0

Answer:

decrease in the quick ratio

Explanation:

The quick ratio is the (cash + marketable securities + cash equivalents) divided by the current liabilities. In this question current liabilities are increasing and all other things are constant, which means in relation to the quick ratio the denominator which is current liabilities is increasing and the numerator is constant, this means that the quick ratio will decrease.

Lets assume that the cash + marketable securities + cash equivalents was 1,000 and current liabilities was 500. In this cash the quick was 1000/500=2

Now we assume current liabilities increase by 100 and are now 600 where as the numerator is the same.

1000/600=1.66

The new quick ratio is 1.66 which is less than 2.

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Suppose that prices in the United States rise relative to prices in France. We expect that (on the foreign exchange market) the
mixer [17]

Answer:

Decrease , Increase

Explanation:

Rising prices of goods and commodities in the United States would absolutely lead to a decrease in demand of the US dollars. This is principally due to the fact that, elsewhere, there is an alternative that costs lesser and hence, there would be a shift in sourcing, making the US dollars weakens.

Now, it is established that demand and supply are an inverse relationship. Due to the fact that demand is low, there’ would be an increase in supply of the currency in the foreign exchange market died to tube fact that there has been an increase in supply for it

4 0
3 years ago
Clyde contracts with Deephole Excavation, Inc., to dig an agricultural pond on his farm. Deephole is to keep the excavated grave
anastassius [24]

Answer: Discharged

Explanation:

 Discharge contract is one of the type of concept that helps in making the various types of agreement between the two members or any two companies.

The discharged contract is basically discharged by using the various types of operation of laws and also b terminating the different types of obligations.

According to the given question, the Clyde contracts with the deep-hole excavation Inc., is one of the type of discharged contract for the process of digging an agriculture farm. Therefore, Discharged contract is the correct answer.  

8 0
3 years ago
Mervon Company has two operating departments: Mixing and Bottling. Mixing has 350 employees and Bottling has 350 employees. Indi
krok68 [10]

Answer:

Allocated administrative cost for mixing is $81000

And allocated administrative cost for for bottling is $81000

Explanation:

We have given total number of employs for mixing = 350

And total number of employs for bottling = 350

Administrative cost = $162000

So total number of employs = 350+350 = 700

So allocation base for mixing =\frac{350}{700}=0.5

So allocated amount for mixing = 0.5×$162000 = $81000

Allocation base for bottling = =\frac{350}{700}=0.5

So allocated amount for bottling = 0.5×$162000 = $81000

3 0
3 years ago
Equipment with a cost of $225,000 has an estimated salvage value of $15,000 and an estimated life of 4 years or 10,000 hours. It
elixir [45]

Answer:

The depreciation is $52,500

Explanation:

The formula to compute the depreciation under the straight-line method is shown below:

= \dfrac{(original\ cost - salvage\ value )}{Number\ of\ years}

= \dfrac{(\$225,000 - \$15,000)}{4\years}

= $52,500

Under the straight-line method, the depreciation expense should be the same for the remaining useful life. Life of the equipment or machine should always be expressed in years, not in hours.

So, these usage of hours should be ignored.

4 0
3 years ago
When your father was born 46 years ago, his grandparents deposited $450 in an account for him. Today, that account is worth $25,
Agata [3.3K]

Answer:

9.1%

Explanation:

To calculate the annual rate of return on this account you can use the following formula:

r = ( FV / PV )^1/n - 1, where

r= rate of return

FV= future value= 25,000

PV= present value= 450

n= number of periods of time= 46

r=(25,000/450)^(1/46)-1

r=55.56^0.0217-1

r=1.091-1

r=0.091 → 9.1%

According to this, the annual rate of return on this account was 9.1%.

5 0
3 years ago
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