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3 years ago

A company could improve its acid-test ratio by selling some equipment it no longer needs for cash. a. True b. Flase

Business

1 answer:

kari74 [83]3 years ago

3 0

Answer:

true

Explanation:

acid test ratio can be calculate by ( Current assets – Inventory ) / Current liabilities. Ideally, the acid test ratio should be 1:1 or higher, however this varies widely by industry. In general, the higher the ratio, the greater the company's liquidity. by selling up equipment in exchange of cash, the will assist the company to be able to handle its current liability with the cash injection into the entity.

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On January 2, 2015, Roth, Inc. purchased a laser cutting machine to be used in the fabrication of a part for one of its key prod

Irina18 [472]

Answer:

Explanation:

Depreciation is the systematic allocation of the cost of a machine over its useful lifetime.

There are different types of depreciation like the straight line , double declining and the units of production method.

<u>Workings</u>

Depreciable amount = 120,000-5000 = 115,000

Useful life = 4 years

Depreciation rate = 115000/4 = 25% = 28,750

2015 2016 2017 2018

Straight line depreciation 28,750 28,750 28,750 28,750

Double declining

Double declining rate = 25%*2 = 50%

2015 = 50% * 115,000= 57,500

2016

Opening book value = 115,000-57,500 = 57500

Depreciation = 57,500*50% = 28,750

2017

Opening book value = 57500-28,750 =28750

Depreciation = 50%*28,750 =14,375

2018

Opening book value 28750-14375 = 14375

Depreciation = 14375*50% = 7188

Units of production

2015 = 280000/1150,000*115,000 = 28,000

2016 =430,000/1150000*115000 = 43,000

2017= 360000/1150000*115000 = 36,000

2018 = 80,000/1150000*115000 = 8000

IF the machine was bought on July 1, 2015

Straight line depreciation

2015 = (25%*115000 ) /2 = 14,375

2016 =25%* 115,000 = 28,750

2017 = 25%*115000 = 28750

2018 = 25%*115,000 =28750

2019 =(25%*115000)/2 = 14,375

Double declining method

2015

(115,000*50,000)/2 =28750

2016

Opening book value =115,000-28750 =86250

Depreciation = 50%*86250 = 43,125

2017

Opening book value =86250-43125 =43125

Depreciation = 43,125*50% = 21,563

2018

Opening book value

43125-21563 =21562

Depreciation = 21562*50% =10,781

2019

Opening book value = 21562-10781 =10781

Depreciation = 50%*10781 = 5391

3 0

3 years ago

In the PACED decision-making tool, what does "E" stand for?

Lilit [14]

Answer:

The E stands for Evaluate

Hope this helps

3 0

2 years ago

The goal of a country with a healthy economy is to have ____________ equal to zero. a. the overall unemployment rate. b. frictio

enyata [817]

The goal of a country with a healthy economy is to have cyclical unemployment equal to zero.

An economy is the area of production, distribution, trade and consumption of goods and services. Generally, it is defined as a social domain emphasizing practices, discourses, and material expressions related to the production, use, and management of scarce resources.

The economy is the system in which goods are produced and exchanged. Without a viable economy, the nation will collapse. There are three main types of economies: free market, command economy, and mixed economy.

An example in the economy is the US stock market system.

Learn more about economy here:brainly.com/question/1106682

#SPJ4

5 0

1 year ago

Consider the market for natural gas. In this industry, low average costs are obtained only through large-scale production. In ot

Serjik [45]

Answer:

A) Economies of scale

Explanation:

Producing natural gas is very expensive and requires a large investment. The costs and risks of the processes involved in the upstream and downstream of natural gas discourage competition. Besides requiring a large initial investment, a drilling company can never be 100% sure that they will be able to find and extract natural gas or petroleum. So besides having to spend a lot of money, you are assuming a great risk.

Even if a competitor finds natural gas, in order for the downstream process to be profitable, they must be able to extract a large volume to achieve economies of scale.

5 0

3 years ago

On a survey of how students spend their time, one question asks, "Which of the following best describes your employment status?"

lesya692 [45]

Answer:

1. Mutual exclusivity

Explanation:

This researcher did not address the aspect of mutual exclusivity well enough as evidenced in options c and d in the coding above.

This is because option d says full time students. Option d is not mutually exclusive as a student can be a full time student and work part-time, and one can be a full time student and also be unemployed or employed full time

6 0

3 years ago