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adoni [48]
3 years ago
5

If a company's current ratio increases from 1.2 to 1.4 from one year to the next, and its quick ratio decreases from 0.2 to 0.15

over the same time period, this indicates: a. the current liabilities have decreased. b. the inventory management should be further examined. c. the liquidity must have increased. d. the accounts receivable have decreased.
Business
1 answer:
Lubov Fominskaja [6]3 years ago
4 0

Answer: b. the inventory management should be further examined.

Explanation:

The Quick ratio is calculated by deducting inventory from the current assets and then dividing that amount by current liabilities while the Current ratio is simply dividing the current assets by the current liabilities.

If the Current ratio increased, it means that the company has more current assets per current liabilities from last year. The fact that the quick ratio dropped however, points to most of the current asset increase being the inventory which means that the company is carrying a lot of inventory.

Their management of inventory such that they are carrying such amounts therefore needs to be further examined before a decision is made on their liquidity.

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The idea that externalities arise because something of value has no price attached to it is associated with
Darya [45]

Answer: public goods and common resources

Explanation:

Externality is the consequence of a producer's or consumer's action on a third party which did not partake in the action.

The idea that externalities arise because something that is valuable has no price attached is associated with the public goods and the common resources. The provision of public goods such as good roads, defence will lead to positive externalities, while the use of common resources such as fish in the river or the environment will lead to negative externalities e.g polluting the environment will give rise to a negative effect on a third party.

4 0
3 years ago
Which settlement option pay a stated amount to an annuitant but no residual value to a beneficiary
Nataliya [291]

Answer:

Life income

Explanation:

8 0
3 years ago
Assume that 11 comma 200 units were in beginning WIP​ Inventory, 35 comma 500 were​ started, 33 comma 000 were​ completed, and 1
Wittaler [7]

Answer:

If company uses weighted average method, then equivalent unit of direct material = Units completed + units in ending WIP

= 33,000 + 13,700

= 46,700 units

If company uses FIFO method, then equivalant unit of direct material = Unit started and completed + Units in ending WIP  

= 33,000 - 11,200 + 13,700

= 35,500 units

5 0
3 years ago
During the current year, Ecru Corporation is liquidated and distributes its only asset, land, to Kena, the sole shareholder. On
statuscvo [17]

Answer:

c. Kena recognizes a gain of $30,000

Explanation:

cash  650,000 debit

  land 250,000 credit

  gain at disposal 350,000 credit

liabilities 500,000 debit

        cash        500,000 credit

Then, the company will close all account and leave kena account with a capital of 150,000 to mathc the remaining 150,000 cash

as her basis is 120,000 there will be a gain for 30,000

4 0
3 years ago
Which of the scenarios is an example of co-branding?
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Co-branding is adding Girl Scouts Thin Mints cookie chunks to a Dairy Queen blizzard treat. Co-branding is the partnership of two brands on a new product.

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