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ivann1987 [24]
3 years ago
11

The current and quick ratios help us measure a firm's liquidity. The current ratio measures the relationship of the firm's curre

nt assets to its current liabilities, while the quick ratio measures the firm’s ability to pay off short-term obligations without relying on the sale of inventories. True or False?
Business
1 answer:
inysia [295]3 years ago
8 0

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

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When you choose to buy a good or service you make your decision in​ ____________ while the people who produce the good or servic
fiasKO [112]

Answer:

your self-interest; their self interest

Explanation:

When you make a decision to buy a good, you make your choice in your self-interest. There could be different reasons to make such choices. This could be because the good could form part of your basic needs or because the prices are quite low.

When people make a decision to produce the good that you are buying, these people are making their decision in their own self-interest. This could also be to make money.

7 0
3 years ago
Equity Method for Stock Investment On January 4, Year 1, Ferguson Company purchased 108,000 shares of Silva Company directly fro
r-ruslan [8.4K]

Answer:

a)

January 4, year 1, investment in Silva Company (36% of outstanding stocks)

Dr Investment in Silva Company 5,184,000

    Cr Cash 5,184,000

July 2, year 1, distributed dividends ( $292,000 x 36%)

Dr Cash 104,400

    Cr Investment in Silva Company 104,400

December 31, year 1, net income reported by Silva Company ($971,000 x 36%)

Dr Investment in Silva Company 349,560

    Cr Revenue from investment in Silva Company 349,560

b)

Balance of Investment in Silva Company = $5,184,000 - $104,400 + $349,560 = $5,429,160

Explanation:

Since Ferguson exercises significant influence over Silva Company, they must record the investment using the equity method.

7 0
3 years ago
Francine is interested in starting a new financial services company where she will manage the investments of others. she wants t
amm1812
<span>Francine would be considered an entrepreneur because she is someone who initiates and assumes the financial risk of a new business enterprise.
</span>An entrepreneur is defined as someone who owns and operates a business or businesses and takes on a greater than normal financial risk to do that. An entrepreneur starts their own business and puts everything they have into making it successful, no matter the risk, they tend to take it to become successful.<span>
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4 0
3 years ago
Based on your personal experience, cite three service businesses and three product businesses that gave you an impressive experi
KengaRu [80]

Explanation:

Product companies: Apple, Adidas and Sephora

Service companies: Dell technical support, Disneyland and Hilton Hotels.

In all these products and services companies mentioned, I had a positive experience in relation to the attendance of the employees, this shows that the employees were really trained. An interesting example is Disneyland, where the slogan "The most magical place on earth" really makes sense, as all employees were trained to provide an experience for the visitor, as they are characterized as famous characters in the film and have a very playful way to create an atmosphere of magic. In other companies, the experience, although different, can be described as similar to Disney, because the main challenge of training employees is that they are able to provide the customer with an effective alignment between the company's purpose and the services offered, so it is essential that the employee is trained to provide all the values ​​that the company demonstrates to the customer, being always solicitous, cordial, having property to answer questions and explain about the product or service, etc.

5 0
2 years ago
Which of the following indicates the financial position of a practice at a point in time and shows its assets and liabilities? A
adell [148]

Answer:

The correct answer would be C, Balance Sheet.

Explanation:

A balance sheet is a document, which contains information about the Assets, Liabilities and owner's Equity of a firm, company or an organization. There is a predetermined format to write a Balance Sheet. There are two sides in this statement. One side contains Assets and Liabilities of the Company, whereas the other side contains the Owner's Equity in a particular point of time. This statement summarizes the financial balances of an individual organization. There are other financial statements of the company as well like Income Statement, cash flow statement, etc, but Balance Sheet is considered most appropriate to have a look at the assets, liabilities and equity of the company at a specific point of time.  

8 0
3 years ago
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