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yawa3891 [41]
2 years ago
10

Minnie knows that double entry has a lot of short-term debt coming due in the next year, and wants to make sure that the company

will have the ability to make the required payments. given a troubling downturn in construction activity over the past couple of months, she is not confident that double entry can count on selling its current inventory of doors before the debt comes due. which of the following ratios would be most relevant to minnie? a. current ratiob. debt to equity ratioc. return on salesd. acid-test ratio
Business
1 answer:
Ronch [10]2 years ago
7 0

Answer:

acid-test ratio

Explanation:

As we know that

Acid test ratio is also known as quick ratio in which the inventory should not be counted plus if any prepaid expenses is there than it also be deducted

The formula to compute the quick ratio is

Quick ratio = (Current assets - inventory - prepaid expenses) ÷ (current liabilities)

So according to the given situation, the minnie ha to make sure about the required payments plus it is also not confident about the inventory so for this she will be reliable on quick ratio

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Metlock Windows manufactures and sells custom storm windows for three-season porches. Metlock also provides installation service
Xelga [282]

Answer:

June 1 2020

No entry

September 1, 2020

Dr Cash $1,980

Dr Accounts receivable $300

Cr Sales revenue $1,730

Cr Unearned sales revenue $550

September 1, 2020

Dr Cost of goods sold $1,140

Cr Inventory $1,140

October 15 2020

Dr Cash $300

Dr Unearned service revenue $550

Cr Accounts receivable $300

Cr Service Revenue $550

Explanation:

Preparation of the journal entries for Geraths in 2020

June 1 2020

No entry

September 1, 2020

Dr Cash $1,980

Dr Accounts receivable $300

($1,730+$550+$1,980)

Cr Sales revenue $1,730

($1,980/$2,610*$2,280)

($1,980+$630=$2,610)

Cr Unearned sales revenue $550 ($630/$2,610*$2,280)

September 1, 2020

Dr Cost of goods sold $1,140

Cr Inventory $1,140

October 15 2020

Dr Cash $300

Dr Unearned service revenue $550

Cr Accounts receivable $300

Cr Service Revenue $550

6 0
3 years ago
In order to alleviate the effects of bias in employment testing, employers might want to use ________ because they typically do
damaskus [11]

Answer: a. tests of conscientiousness

Explanation:

Test that measure conscientiousness essentially check to see if the prospective employee is capable of doing the tasks required of them well and with seriousness. The test will also show if the person is capable of showing the required diligence and care in their roles.

Such tests are free of bias in testing as conscientiousness can be measured evenly across cultures.

6 0
2 years ago
What are the six segments of the travel industry? Give examples of each. <br> Actual examples please
il63 [147K]
Like cars, bikes, airplanes, trains, public transport?
8 0
3 years ago
The process by which the use of a new product or service spreads throughout a market group is referred to as
MrRissso [65]

Answer:

Diffusion of innovation.

Explanation:

  • It's a widely studied method where the theory suggests that the rate at which the new ideas spread and develops or prophets in all the directions is seen by the early majority, late majority, and laggards and is a method of group marketing through the various communication channels.
3 0
3 years ago
Lina Co. uses the allowance method to account for bad debts. On January 28, Lina determines that a $200 balance from ZRT, Inc. i
elena55 [62]

Answer:

c) credit to Accounts Receivable - ZRT.

f) debit to Allowance for Doubtful Accounts.

Explanation:

As for the information provided,

We know in allowance method, provision is created as and when there are doubtful debts, for which entry is

Bad Debts Expense Account Dr.

To Allowance for doubtful debts.

And when the bad debts are actually written off then,

The entry will reduce the balance of accounts receivables and that of allowance as well.

Entry will be:

Allowance for Doubtful debts A/c Dr.

To Accounts Receivables.

Thus, correct options shall be:

Option c) and f)

4 0
3 years ago
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