Answer:
Option (c) is correct.
Explanation:
Given that,
Cash = $4,000
Short-term investments = $75,000
Accounts receivable = $61,000
Inventories = $110,000
Prepaid expenses = $30,000
Total current liabilities = $100,000
Current assets:
= Cash + Short-term investments + Accounts receivable
= $4,000 + $75,000 + $61,000
= $140,000
Therefore,
Acid-test ratio:
= Current assets ÷ Current liabilities
= $140,000 ÷ $100,000
= 1.4 to 1
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An action which this company needs to take is debit Inventory and credit Cost of Goods Sold for $1,500.
<h3>What is journal entry?</h3>
A journal entry can be defined as a process which involves keeping the records of the financial transactions of a business such as sales, salaries, inventory, etc, that are made by a business organization.
In Financial accounting, the journal entry is generally used by both bookkeepers and accountants for effective and efficient record purposes. This ultimately implies that, it is very important that a journal comprises the following information;
- Date
- Reference number.
- Credit balance.
- Transaction description.
- Debit balance.
In this scenario, the proper journal entry to record this financial transaction consists of a debit Inventory and credit to Cost of Goods Sold for $1,500.
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Answer:
It acts as a stimulus to a market
Explanation:
Incentive encourages people to act in a particular and desired way. It is anything that motivates people to work hard to achieve set objectives.
Since incentives influence behavior, they can act to stimulate the market. Stimulating the market refers to the actions that encourage increased economic activities. Incentives lead to increased levels of activities in the market.
Answer:
we expect to experience both efficiency and effectiveness when interacting with organizations