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MrMuchimi
3 years ago
6

Which of the following best describes measures of immediate liquidity? The current ratio and the quick ratio will always have di

fferent results regardless of the industry in which the company operates. The quick ratio excludes inventory in the denominator because most businesses cannot readily convert inventory to cash. The current ratio reflects existing cash as well as amounts to be converted to cash in the normal operating cycle. The quick ratio reflects existing cash as well as amounts to be converted to cash in the normal operating cycle.
Business
1 answer:
mr Goodwill [35]3 years ago
4 0

Answer:

The current ratio reflects existing cash as well as amounts to be converted to cash in the normal operating cycle.

Explanation:

 As we know that

There are two liquidity ratios which is current ratio and quick ratio

The formula to compute each one is shown below:

Current ratio = Current assets ÷ Current liabilities

And, the quick ratio = Quick assets ÷ current liabilities

where,

Quick ratio = Current assets - inventory - prepaid expenses

By considering the two above ratios we could find the liquidity position of the ratio but the current ratio is the best as it includes all the items i,e to be required for it

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Gre4nikov [31]

Answer:

a. trade-offs 

c. marginal thinking 

Explanation:

Marginal thinking is when a decision maker evaluates the marginal benefits and marginal cost of a certain activity. Daniel is trying to evaluate if the extra calories (marginal cost) he would get from eating the 5th size of pizza (marginal benefit) is worth it.

Trade offs is also known as opportunity cost. It is what is sacrificed in order to carry out a certain activity. If Daniel eats the pizza, he's sacrificing a more healthy body for the extra slice of pizza.

I hope my answer helps you

5 0
3 years ago
A machine purchased 1 year ago for $85,000 costs more to operate than anticipated. When purchased, the machine was expected to b
goblinko [34]

Answer:

Value of S=$25000.

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Value of P= $75000

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Since the salvage value would be after 5 years=

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4 0
3 years ago
Cybernet Systems is a​ start-up company that makes connectors for​ high-speed Internet connections. The company has budgeted
Sophie [7]

Answer:

$10,950 Unfavorable

Explanation:

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3 years ago
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