Answer: 1.27
Explanation:
The acid test ratio of a company measure how well a company would be able to pay off its current liabilities using its most liquid current assets (current assets less inventory).
= (Cash + Accounts Receivable) / Current liabilities
= (40,000 + 55,000) / 75,000
= 95,000 / 75,000
= 1.27
Answer:
The answer is economies of scale .
Explanation:
Government license, patents and public franchise are all forms of legal barriers that prevents new entrants from copying, imitating or entering the market. However, economies of scales are a economic barrier that arises due to the scale of operations of a firm and is not a legal barrier.
Answer:
Increase and remain the same respectively
Explanation:
Given the above information, we know that current ratio is computed as;
Current ratio = Current assets ÷ Current liabilities
Current ratio = $60,000 ÷ $34,000
Current ratio = 1: 1.76
Working capital is computed as;
= Current asset - Current liabilities
= $60,000 - $34,000
= $26,000
As a result of the above, the current ratio increased because of the reduction in the current liabilities value while the working capital remains the same.
Answer:
A
Explanation:
Should be A as your savings account will accrue interest and the stock market is volatile.
Answer:
$78.50
Explanation:
Customer Ward earned $80 for a transaction with a transaction fee of $1.5.
In Retail Credit Card, the business (in this case Customer World) is expected to assume all transaction fees and charges.
Therefore, Customer World would expect the Credit card company to deduct the transaction charge before deposition into their account.
The amount to be deposited is:
$80-$1.5
=$78.5
The Credit Card company will deposit $78.50 into Customer World's Business Account.
