1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
finlep [7]
3 years ago
6

g The current ratio is a.a solvency measure that indicates the margin of safety for bondholders. b.used to evaluate a company's

liquidity and short-term debt paying ability. c.calculated by dividing current liabilities by current assets. d.calculated by subtracting current liabilities from current assets.
Business
1 answer:
adoni [48]3 years ago
3 0

Answer:

b.used to evaluate a company's liquidity and short-term debt paying ability.

Explanation:

The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year. It tells investors and analysts how a company can maximize the current assets on its balance sheet to satisfy its current debt and other payables.

The current ratio is sometimes referred to as the “working capital” ratio and helps investors understand more about a company’s ability to cover its short-term debt with its current assets.

A company with a current ratio less than one does not, in many cases, have the capital on hand to meet its short-term obligations if they were all due at once, while a current ratio greater than one indicates the company has the financial resources to remain solvent in the short-term.

You might be interested in
1. What's NOT an assumption we usually make about costly products and services?
zloy xaker [14]

Answer:

B

Explanation:

I would assume the correct answer would be B. This is because when you go to a store you typically assume the higher cost item is of higher quality then the lower cost item. For example: One may buy a yeti cooler over an igloo cooler because the very high price tag makes them feel as if the cooler is just that much better then the competitor. If correct please mark brainliest.

3 0
3 years ago
Suppose that government officials have set an emissions tax to reduce pollution. Assume that the optimal tax would be $1,500, bu
Mariulka [41]

Answer: there will be too much pollution

Explanation:

From the question, we are informed that government officials have set an emissions tax to reduce pollution and that the optimal tax should have been $1,500 but government officials have set the tax equal to $500.

It should be noted that due to the fact that the optimal tax has been set below the equilibrium, this will lead to a rise in pollution as the people will be aware that they're paying less than the optimal level which will lead to more pollution. An increase in the optimal tax will have help in reducing the pollution.

8 0
3 years ago
Which of the following statements about free cash flow is true? A : Significant free cash flow indicates less potential to finan
spayn [35]

Answer:

The correct answer is (C)

Explanation:

Free cash flow is calculated by subtracting operating cash flow from the expenditures. Free cash flow statement also known as FCF statement is generally the amount of cash left after paying all the expenditures. As it is the leftover amount it is not reported on the cash flow statement. This free cash flow amount is used to analyse how much a company can distribute among the stakeholders.

6 0
3 years ago
In head-to-head positioning a company positions its product to compete directly against competitor's products, while Blank______
Juli2301 [7.4K]

Answer:

differentiation

Explanation:

5 0
2 years ago
4)
vova2212 [387]

Answer:

I. The three (3) main functions of money in an economy are;

a. Medium of exchange.

b. Unit of account.

c. Store of value.

II. Liquidity is a characteristic of money.

Explanation:

In economics or financial accounting, money can be defined as any asset used by an individual or business entity to make purchases of goods and services at a specific period of time.

Simply stated, money refers to any asset which can be used to purchase goods and services by customers.

This ultimately implies that, money is any recognized economic unit that is generally accepted as a medium of exchange for goods and services, as well as repayment of debts such as loans, taxes across the world.

I. The three (3) main functions of money all over the world are;

a. Medium of exchange.

b. Unit of account.

c. Store of value.

II. The rate at which an asset can be used to purchase any goods or services refers to its liquidity. Thus, liquidity is a quality or characteristics of money as a medium of exchange.

In conclusion, money is a generally accepted medium of exchange around the world and money being a store of value makes it possible to transfer purchasing power between traders and buyers from the present to the future.

4 0
3 years ago
Other questions:
  • he idea of increasing opportunity cost is reflected in the A. bowed in shape of the production possibilities frontier. B. positi
    5·1 answer
  • Quinn has capacity to make 950,000 zippers per year, but due to a soft market, only plans to produce and sell 620,000 zippers ne
    6·1 answer
  • Tariffs and other trade restrictions increase the domestic scarcity of products from abroad. Such policies benefit domestic prod
    11·1 answer
  • A corporation’s articles of incorporation can be changed relatively easily. True False
    5·1 answer
  • After saving money in his piggy bank for three years, Omar decided to deposit $2,500 of the money in the local bank. If the bank
    14·1 answer
  • A company is recording the disposal of accounts receivable with two different transactions. One transaction affects the balance
    15·1 answer
  • Zero Calories Company has 16,000 shares of cumulative preferred 1% stock, $40 par and 80,000 shares of $150 par common stock. Th
    8·1 answer
  • Martin Company manufactures a powerful cleaning solvent. The main ingredient in the solvent is a raw material called Echol. Info
    10·1 answer
  • Mesquite, Inc. has held-to-maturity debt securities it purchased in 20X1. At December 31, 20X2, the amortized cost basis of the
    8·1 answer
  • g Distinguish between the total U.S. debt and the debt held by the public. Why is the debt as a percentage of GDP more relevant
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!