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4 years ago

The current ratio is calculated as total current assets divided by total current liabilities.

Business

1 answer:

scoray [572]4 years ago

8 0

Answer:

A. True

Explanation:

The current ratio shows a relationship between the current assets and the current liabilities

In mathematically,

Current ratio = Total Current assets ÷ total current liabilities

where,

The current assets = Cash and cash equivalents + Short-term investments + Accounts and notes receivable + Inventories + Prepaid expenses and other current assets

And, current liabilities would be

= Short-term obligations + Accounts payable

This current ratio is always expressed in times plus its reflects the liquidity of the business organization

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A certain town in the Midwest obtains all of its electricity from one company, North-star Electric. Although the company is a mo

Jlenok [28]

Answer:

False

Explanation:

Therefore, since the monopoly price is higher than marginal cost and also less than the competitive quantity is produced, there will be a deadweight loss even if all the profits are given back to the citizens.

A monopolist market qualities includes the charge of a higher price, produces a smaller quantity of output and gives or generate a dead weight loss to society. Usually for a monopoly to be achieved, price does not need to equal marginal cost. Monopolies is therefore not or cannot charge any price they want. .

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3 years ago

What is the tax that you pay when making a profit from selling a house

qwelly [4]

If you owned and lived in the place for two of the five years before the sale, than up to $250,000 of profit is tax free.

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3 years ago

if you had to reduce your spending to balance your budget, which would you try to reduce first variable or fixed expenses PLEASE

ziro4ka [17]

<u>Answer:</u>

Variable expenses are generally the principal costs that individuals attempt to slice when they have to begin setting aside cash. Sadly, factor expenses are additionally the absolute hardest costs to reduce, because it requires an everyday pledge to cheap essential leadership.

It is important to start reducing costs, take a consideration at both your variable fixed costs. Dedicating a Saturday evening to looking into the majority of your memberships, protection designs, and repeating month to month bills may assist you with cutting the expenses .

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3 years ago

How does a lender in the primary mortgage market earn money when a loan is originated?

Arlecino [84]

Mortgage lenders can make money in a variety of ways, which includes origination fees, discount points, yield spread premiums, closing costs, loan servicing and mortgage-backed securities.

Yield spreads are the spreads which include the spread of the rate which any lender pays for money borrowed by them from larger banks and the rate which they charge from borrowers.

Closing costs are the fees which the lenders may take from th8e borrower include application, underwriting, processing, loan lock, and other fees.

Lenders always use their funds when they extend mortgages, they charge an origination fee of 0.5% to 1% of the loan value for extending this , which becomes due with mortgage payments.

To know more about the mortgage lenders here:

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4 0

2 years ago

Swann Company sold a delivery truck on April 1, 2016. Swann had acquired the truck on January 1, 2012, for $45,500. At acquisiti

olganol [36]

Answer:

Journal Entries

Dr. Cash_________________$11,125

Dr. Accumulated Depreciation $36,125

Cr. Truck ________________ $45,500

Cr. Gain on Disposal ________$1,750

Dr. Cash_________________$7,525

Dr. Loss on Disposal ________$1,850

Dr. Accumulated Depreciation $36,125

Cr. Truck ________________ $45,500

The gain is reported as a realized gain in the income statement after operating income for the period.

The loss is reported as a realized loss in the income statement after operating income for the period.

Explanation:

We need to calculate the depreciation for the 3 months of 2016.

Depreciation for the period = ( ( Initial cost -Residual Value ) / Useful life ) x Time Fraction = ( ( $45,500 -$3,000 ) / 5 ) x 3/12 = $2,125

Book Value on April 1, 2016 = Book Value on December 31, 2015 - Depreciation for 2016 = $11,500 - $2,125 = $9,375

Accumulated Depreciation = Initial cost - Book value = $45,500 - $9,375 = $36,125

Now compare The bok value o sale price to calculate the gain or losss

Gain = Sale Value - Book value = $11,125 - $9,375 = $1,750

Loss = Book Value - Sale value = $9,375 - $7,525 = $1,850

4 0

3 years ago