Answer:
True
Explanation:
Current Ratio: The current ratio shows a relationship between the current assets and the current liabilities. The formula is shown below:
Current ratio = (Total Current assets ÷ total current liabilities
)
Quick Ratio: The quick ratio shows a relationship between the quick assets and the current liabilities. The formula is shown below:
Current ratio = (Quick assets ÷ total current liabilities)
where,
Quick assets = Current assets - inventories - prepaid insurance
So, the given statement is true
Answer
C. A portfolio made up of 60% stocks, 30% mutual funds and 10% Treasury bonds.
Explanation
In this option, the investment is more than 50% for the money placed in stocks and the prices for stock keep on fluctuating on daily basis. This is a highly risky investment though investments in stock can give a good return. To safeguard the amounts that were saved, a person has to avoid putting more investments on stock.
Answer:
Explanation:
A debit is an entry made in an account. It either increases an asset or expense account or decreases equity, liability, or revenue accounts.
A credit is an entry alsom made in an account. It either increases equity, liability, or revenue accounts or decreases an asset or expense account.
