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
AlekseyPX
3 years ago
6

A firm’s liquidity level decreases when:_______.

Business
1 answer:
katovenus [111]3 years ago
5 0

Answer:

b) inventory is sold on credit.

Explanation:

Liquidity is defined as the a business to use its current assets to settle it's current liabilities.

This is calculated by using the working capital ratio.

Working capital ratio = Current assets ÷ Current liabilities.

Cash and inventory contribute to a business' liquidity.

When inventory is sold on credit, it does not result in immediate increase in cash as payment is in the future. So there is a reduction in the current asset of the company.

A reduction in the numerator of the working capital ratio results in lower value of the ratio (lower liquidity)

You might be interested in
What is the term that refers to a form of wealth that can be stored for the future?
Yuri [45]

Answer: The correct answer is asset.

Explanation: An asset is a form of wealth that can be stored for the future. Assets can occur in any number of forms, but the trait that they all have in common is that they can be converted to cash. Assets may be in the form of cash, equipment, property, vehicles, or anything else that has value.

6 0
3 years ago
Market Research Reading Quiz QUESTION 5 of 10: Market research concerns what aspects of your target market: a Characteristics b)
Sedaia [141]

Answer:

Do you still neeed help

Explanation:

6 0
3 years ago
Valley Spa purchased $10,200 in plumbing components from Tubman Co. Valley Spa signed a 60-day, 14% promissory note for $10,200.
zavuch27 [327]

Answer:  Debit Accounts Receivable -Valley Spa  of $10,438 Credit interest revenue $238, Credit Notes receivable $10,200

Explanation:

Interest  Revenue =  Principal x Rate X time

$10,200 x 14% x 60/ 360 ( Using 360 days in a year)

$238

Journal to record dishonored note  for Tubman

Accounts titles and explanation           Debit         Credit

Accounts receivable                         $10, 438  

Interest revenue                                                                $238

Notes receivable                                                    $10,200

8 0
3 years ago
Walden’s family is shopping for a reclining chair. The chair the family decided on has a retail price of $800 plus 5% sales tax
Licemer1 [7]

Just by looking at the answer you can take out D because C already offers no tax and 5% off, do C is better than D, so we only have to do t math for A, B, and CA is 800 plus tax, with $75 back800×1.05 (because it's 5% tax) -75 =$765B is 800×.90 (because 10% off means he's paying 90%)×.05=$756C is 800×.95 (because 5% off means he's paying 95%) =760A=765B=756C=760So B is the best deal


:)

7 0
3 years ago
Read 2 more answers
Vicki likes to visit a social network site called Fanfiction and read the stories that others post on this site. She doesn't rea
LenaWriter [7]

Answer: The correct answer is "c.spectators".

Explanation: Vicki is the spectator type of social media participants because he does not interact with others, visit the website often and do not publish any stories, he only dedicates himself to reading the stories that others publish.

8 0
3 years ago
Other questions:
  • A fixed cost: Does not change with changes in the volume of activity within the relevant range. Requires the future outlay of ca
    13·1 answer
  • As a contemporary manager, your employees will perceive that their opinions are more valued if:
    14·1 answer
  • On January 2, 2017, Swify Corporation began construction of a new citrus processing plant. The automated plant was finished and
    8·1 answer
  • Genna approached Al Ternator about joining the business as an owner. She offered to provide the technical expertise and deal dir
    12·1 answer
  • Master Corp. issued 8%, $80,000 bonds on February 1, 2020. The bonds pay interest semiannually each July 31 and January 31 and w
    8·1 answer
  • What is the IRR for a project that costs $100,000 and provides annual cash inflows of $30,000 for 6 years starting one year from
    14·1 answer
  • On January 1, James Industries leased equipment to a customer for a five-year period, at which time possession of the leased ass
    13·1 answer
  • Explain aims of accelerated growth initiative for South Africa​
    9·1 answer
  • Using the data below, determine the ending inventory amount assuming the weighted average method under a periodic inventory syst
    5·1 answer
  • For a 13-person team, how many extra workers should be hired to meet the labor hours needed without overtime
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!