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trapecia [35]
3 years ago
10

Assuming an acid-test ratio of 1.0, how will the purchase of inventory with cash affect the ratio?

Business
1 answer:
docker41 [41]3 years ago
6 0

Answer:

C) Decrease the acid-test ratio

Explanation:

The quick ratio is also called acid test ratio. It is a liquidity ratio that measures level of liquid assets of a business.

That is the amount of cash or near cash assets it has to settle it's current debt.

Mathematically

Quick ratio = (Current assets - Inventory) ÷ Current liabilities

If cash (current asset) is used to buy Inventory. Cash will reduce and inventory will increase.

The value of (Current asset - Inventory) reduces.

As the numerator in the ratio reduces, the quick ratio also reduces.

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Suppose that two things happen simultaneously in the market for fish. First, a new technology allows fishing boats to catch more
Nata [24]

Answer: Increase in equilibrium quantity of fish.

Explanation: New technology allows fishing boats to catch more fish while using the same number of crew-members. This will increase supply of fish shifting the supply curve for fish to the right.

At the same time a new study shows that eating fish at least three times a week helps prevent heart attacks. This will increase demand for fish shifting the demand curve for fish to the right.

The net effect of these changes is an increase in equilibrium quantity of fish. However, the change in the price of fish cannot be determined as it depends on the magnitude of shift in the two curves.

3 0
3 years ago
Southeastern Bank organizes its loan operations based on the market served—consumer, small business, or nonprofit organizations.
bezimeni [28]

Answer:

customer group

Explanation:

Customer departmentalization is where the organization’s activities are ready to respond to and interact with specific customers or customer groups.

This organizational form is used when great emphasis is placed on effectively serving different customer types.

If Southeastern Bank organizes its loan operation based on customers group, this will allow Southeastern Bank to better serve borrowers with different needs by offering customized loan arrangements according to the customers preferences.

<u>Advantages of customer departmentalization </u>

  • Encourages concentration on customer needs.
  • Gives customers feeling that they have an understanding supplier (banker).
  • Develops expertness in the customer area.
  • Saves customers’ time.
3 0
3 years ago
there is a growing emphasis on strategic supply management processes and less on purchase transactions.
PSYCHO15rus [73]

This statement is true. As there is the growing emphasis on the strategic supply management processes and less on the purchase transactions.

Effective interpretation of corporate and supplier objectives, selection of appropriate actions to achieve objectives and integration of inventory information into organizational strategies. hiring professionals trained specifically in supply management, providing them with technical knowledge and long-term leadership development. emphasizing strategic cost management, engaging key suppliers early in the process, and measuring reductions in total cost of ownership. Supply management has evolved from a process-oriented, strategic function to a transactional, tactical function. The reduction in inventory investment comes primarily from users reducing their demand for stocked items. Therefore the statement is true.

Learn more about supply management.

brainly.com/question/25843620

#SPJ4

8 0
1 year ago
Outside directors are defined as
Westkost [7]

Answer:

B) individuals on the board who are not employed by the board's corporation.

Explanation:

The outside director are those director who are not employee of the company they only receive their fee per meeting. These directors are also known non executive director. Their objective is to protect the interest of shareholders by supervising different fiction of business and ensure that shareholder's interest is safe.

8 0
3 years ago
What is the bullwhip effect and how does it relate to lack of coordination in a supply chain?
rewona [7]

Answer:

The bullwhip effect happens when retailers or other members of the supply chain overestimate a sudden increase in demand, and this causes a chain reaction in all the other participants of the supply chain that start requesting higher quantities of goods or materials for production. E.g. the fidget spinner was a very popular fad and its producers probably didn't anticipate how large the demand would be. Once the product became extremely popular, everyone wanted to sell fidget spinners. This caused an increase in the order quantities of all the supply chain. Once the fad faded out, all this momentum stopped and many stores, distributors, wholesalers, and even factories were left with huge unsold stocks of fidget spinners.

When the supply chain is well coordinated, there is little chance for some retailers or distributors to over react and want more product just in case. If your supply is guaranteed, then it would take some extraordinary increase in demand to make you want to increase your purchase orders. But if your supply chain is not well coordinated, you might fear that you will lose a lot of sales and other competitors will make them. Then you get anxious and start ordering large quantities.

6 0
3 years ago
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