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wlad13 [49]
3 years ago
10

A company builds a new plant and finances its construction by issuing stock. Which ratio is least likely to be affected, all els

e being equal?
a. Current ratio
b. Debt to equity ratio
c. Debt to asset ratio
d. Net fixed assets to total assets
Business
1 answer:
Marta_Voda [28]3 years ago
7 0

Answer:

a. Current ratio

Explanation:

Current Ratio is the least likely to be affected

The  Current Ratio is given as

Current Ratio = [ Current assets ] ÷ [ Current liabilities  ]

Now,

Building a new plant is a fixed asset for the company.

Thus, It will add to the Fixed assets

Since,

The Formula for current ratio is independent of the fixed assets

Therefore,

It will be least affected.

While,

Debt to equity ratio = [ Debt ] ÷ [ Equity ]

Debt to asset ratio= [ Total Debt ] ÷ [ Total Assets ]

Net fixed assets to total assets = [ Net fixed assets ] ÷ [ Total assets ]

in all the above relations, fixed asset will change the value of the total assets.

Hence,

They all will be affected

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Answer:

The journal entry to record the bond issuance is shown below:

Explanation:

The journal entry to record the bond issuance is as:

Cash A/c.............................................Dr  $420,000

        Bonds Payable A/c......................Cr  $420,000

Being the bonds issued

As the bonds are issued by the company so cash is coming into the business, which is an asset and any increase in asset is debited. Therefore, the cash account is debited. And cash is received against the bonds payable, so the account of bonds payable is credited.

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3 years ago
According to the scor model, supply chain management covers five broad areas including planning activities, which __________.
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The correct answer is cover the actual production of a good or service.

Supply chain management choices are addressed, improved, and communicated with suppliers and consumers of a firm using the supply chain operations reference model (SCOR), a management tool. The operational methods required to satisfy client requests are described in the model.

<h3 /><h3>What does SCOR entail?</h3>

A supply chain must carry out the SCOR operations in order to achieve its main goal of completing client orders. There is only one representation for each distinct process in SCOR. The six main processes that SCOR identifies as level-1 processes are Plan, Source, Make, Deliver, Return, and Enable.

<h3>Why does business employ the SCOR model?</h3>

The SCOR method may assess the supply chain of a corporation at various degrees of process detail. It offers businesses a sense of how sophisticated their supply chain is. The procedure aids businesses in comprehending how the five procedures constantly recur between clients, suppliers, and the business itself.

To know more about Supply chain, visit: brainly.com/question/15582420

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8 0
1 year ago
Category specialists are also called category ______ because of their ability to offer a complete assortment in a category at so
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Answer:

are also called Category Killers

Explanation:

Category killers are retailers that diligently executes deep product assessment within a given category through selection, pricing, and market penetration.

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2 years ago
Investment Management Inc. (IMI) uses the capital market line to make asset allocation recommendations. IMI derives the
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Answer:

The expected return that IMI can provide subject to Johnson's risk constraint is 8.5%

Explanation:

Capital Market Line (CML)

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Standard deviation on the market portfolio, σ_p = 20%

Risk-free rate, r_f = 5%

E(r_c) =  r_f + [  E(r_p)  - r_f ] × ( σ_c ÷ σ_p)

         = 0.05 + [ 0.12 - 0.05] × (0.10 ÷ 0.20)

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5 0
3 years ago
Customer World expects the credit card company to deposit funds in their business account for their sales where a customer uses
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Answer:

$88.75

Explanation:

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I hope the answer is helpful.

Thanks for helping.

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