All categories

3 years ago

A liquid asset is one that is easy to cash in.

2 answers:

5 0

Cash on hand is the most liquid asset. Money in a savings account is a popular liquid asset and is very easy to withdraw and more liquid than a loan to a business.

kipiarov [429]3 years ago

3 0

Cash on hand is considered the most liquid type of liquid asset since it is cash itself.

You might be interested in

Liabilities are often created as a result of an expense incurred by a company. Which of the following liabilities is not the res

Vladimir79 [104]

Answer and Explanation:

C) Federal unemployment tax payable

4 0

3 years ago

Calculating the geometric and arithmetic average rate of return) Marsh Inc. had the following end-of-year stock prices over th

KatRina [158]

Complete Question:

Marsh Inc. had the following end-of-year stock prices over the last five years and paid no cash dividends:

Time Marsh

1 $99

2 141

3 121

4 88

5 99

a. Calculate the annual rate of return for each year from the above information.

b. What is the arithmetic average rate of return earned by investing in Marsh's stock over this period?

c. What is the geometric average rate of return earned by investing in Marsh's stock over this period?

d. Considering the beginning and ending stock prices for the five-year period are the same, which type of average rate of return (the arithmetic or geometric) better describes the average annual rate of return earned over theperiod?

Answer:

Marsh Inc.

a. annual rate of return for each year

Year

2 42. 4%

3 -14.2%

4 -27.3

5 12.5

b. The arithmetic average rate of return earned by investing in Marsh's stock over this period is:

= 3.35%

c. The geometric average rate of return earned by investing in Marsh's stock over this period is:

= -0.7502%

d. Considering the beginning and ending stock prices for the five-year period are the same, the geometric type of average rate of return better describes the average annual rate of return earned over the period.

Explanation:

a) Data and Calculations:

Time Marsh ARR

1 $99

2 141 42. 4% ($42/$99 * 100)

3 121 -14.2% (-$20/$141 * 100)

4 88 -27.3 (-$33/$121 * 100)

5 99 12.5 ($11/$88 * 100)

Sum of ARR = 13.4%

Arithmetic mean = 3.35% (13.4%/4)

Geometric mean = {(1 + 0.424 * 1 - 0.142 * 1 - 0.273 * 1 + 0.125)∧1/4} - 1

= {(1.424 * 0.858 * 0.727 * 1.125)∧1/4} - 1

= {(0.99927)∧1/4} - 1

= 0.2498 - 1

= -0.7502

< 0

3 0

3 years ago

Greg Knowles owns a business, Clean and Paint. Clean and Paint has 47 employees, equipment worth $350,000, and signed contracts

svetlana [45]

Answer:

D. "The business could be liquidated or continued by Greg's heirs"

4 0

3 years ago

Athena Company provides employee health insurance that costs $15,100 per month. In addition, the company contributes an amount e

weqwewe [10]

Answer:

Debit to Employee Benefits Expense $21,140

Explanation:

Preparation of Athena Company entry to record the accrued benefits for the month

Using this formula

Accrued Expenses = Gross salary ×Percentage of the amount contributed+ Insurance cost

Let plug in the formula

Accrued Expenses= $151,000 × 0.04

= $6,040 + $15,100

= $21,140

Debit to Employee Benefits Expense $21,140.

Therefore the entry to record the accrued benefits for the month would include a: Debit to Employee Benefits Expense $21,140.

5 0

3 years ago

The Sports Warehouse operates in two distinct segments; equipment and apparel. The income statements for each operating segment

tatuchka [14]

Answer:

Vertical analysis of The Sports Warehouse's two operating segments.

Equipment Apparel

Amount$ % Amount$ %

sales 1,700,000 100 2,850,000 100

Cost of goods sold 1,100,000 64.7 1,400,000 49.1

Gross profit 600,000 35.3 1,450,000 50.9

Operating expenses 250,000 14.7 500,000 17.5

operating income 350,000 20.6 950,000 33.3

other income/expenses 25,000 1.50 (60,000) 2.1

income before tax 375,000 22.1 890,000 31.22

income tax expense 90,000 5.30 280,000 9.8

net income 285,000 16.8 610,000 21.4

The a) Apparel segment is more profitable than the b) Equipment segment

Explanation:

Vertical analysis ios made by taking a percentage of each lsited items of income statement to a base value. Normally the base value is the sales value. In this question I have calculated all the percentage based on the sales value.

Gross Margin

By comparing the Gross margin of both segments, 50.9% of apparel is more than that of 35.3% of Equipment. So, Apparel segment is more profitable.

Net Margin

By comparing the Net margin of both segments, 21.4% of apparel is more than that of 16.8% of Equipment. So, Apparel segment is more profitable.

4 0

3 years ago

Read 2 more answers