Explain why the quick ratio might be a better indicator of an entity's liquidity than the current
Question:
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 81% (11 reviews)
The current ratio includes assets such as inventory or p...View the full answer
Answered By
RADHIKA MEENAKAR
I am a qualified indian Company Secretary along with Masters in finance with over 6 plus years of professional experience. Apart from this i am a certified accounts and finance tutor on many online platforms.
My Linkedin profile link is here https://www.linkedin.com/in/radhika-meenakar-88b9808a/
5.00+
12+ Reviews
22+ Question Solved
Related Book For
Question Posted:
Students also viewed these Managerial Accounting questions
-
Explain why the quick ratio or acid-test ratio is a better measure of a firms liquidity than the current ratio.
-
The labor force participation rate is a better indicator of the economy than the unemployment rate. The latter excludes people who may want a job but have been discouraged by their lack of success...
-
Which is likely to be a better indicator of acidification stress on forest trees, a molar ratio of Ca/Al in leaf tissue less than 1.0 or a molar ratio of Ca/Mn less than 1.0 in the leaf tissue? Why?
-
Find the exact value of sin(x - y) if sin(x) = 3T 3T T
-
When setting prices, what is the difference between how you would take into account an incremental fixed cost and how you would take into account a fixed cost that is not incremental?
-
Presented below is information related to Mantle Company. Instructions Compute the inventory by the conventional retail inventorymethod. Cost Retail Beginning inventory 50,000 Purchases Markups...
-
Suppose you are often dissatisfied with the way things are done in your institution but are afraid to speak up or propose alternative ways of doing things. Does this mean you can never be a leader in...
-
The trial balance for Lindor Corporation, a manufacturing company, for the year ended December 31, 2011, included the following income accounts: The trial balance does not include the accrual for...
-
Enter script that accomplishes this on the router: Defines the enable password password Defines the enable secret password cisco Returns to the enable mode Returns to the user mode Attempts...
-
Stoney Mason, Inc., has sales of $6 million, a total asset turnover ratio of 6 for the year, and net profits of $120,000. a. What is the company's return on assets or earning power? b. The company is...
-
Is it possible for an entity to be too liquid? Explain.
-
Describe a situation where a user of a private corporation's financial statements would be interested in segregating permanent and transitory earnings. Explain why the separation of the two types of...
-
Julie Williams had a lot on her mind when she left the conference room at Specialty Packaging Corporation (SPC). Her divisional manager had informed her that she would be assigned to a team...
-
Who can buy tradable sulfur dioxide permits? only the government only those who use electricity only electricity generators anyone?
-
Identify an industrial sector in West Africa. A paper evaluating changing location considerations for that sector. Why and how have these sectors changed since the start of the industrial revolution?
-
Research global warming. Do you believe that it really exists? Why or why not? How do you think different countries are addressing the issue? Do you believe that the United States is doing its part...
-
A convex mirror is used to reflect light from an object placed 66cm in front of the mirror. The focal point is 46cm from the mirror. What is the focal length as you would use in the mirror equation?...
-
Sundance Systems has the following transactions during July. July 5 Purchases 48 LCD televisions on account from Red River Supplies for $2,900 each, terms 3/10, n/30. July 8 Returns to Red River...
-
For each of the following traits, indicate the appropriate level of measurement: (a) Student part-time jobs (b) Market share of a product between 0% and 100% (c) Students chosen programme of study...
-
1. What are some current issues facing Saudi Arabia? What is the climate for doing business in Saudi Arabia today? 2. Is it legal for Auger's firm to make a payment of $100,000 to help ensure this...
-
The GDP deflator in Econoland is 200 on January 1, 2014. The deflator rises to 242 by January 1, 2016, and to 266.2 by January 1, 2017. a. What is the annual rate of inflation over the two-year...
-
We have found our answer, activity-based costing it is, exclaimed Roger Lalonde, general manager of a multi-departmental medium-sized manufacturing company. Roger had recently attended a seminar...
-
In an exclusive august 2007 survey of 1,011 people aged 50 and over, AARP The Magazine sought to learn what older Americans think about life after death. They found that 73% agree with the statement...
-
1. Show how the IS curve and the LM curve can be shifted to get an increase in output without a change in interest rates. What kind of mix of monetary and fiscal policies is needed to do this? How...
-
Set up and operate computerised accounting systems in Australia Background Knowledge and Reflections Your business: reflecting on your approach 1. When entering the purchase invoices into Xero /...
-
You purchased 1 0 0 0 shares of stock in Cumberland Software for $ 3 per share on January 1 , 2 0 1 6 . You received 6 cents per share annually in dividends. On December 3 1 , 2 0 1 9 , you sell all...
-
You decide to invest in a portfolio consisting of 30 percent Stock A, 30 percent Stock B, and the remainder in Stock C. Based on the following information, what is the expected return of your...
Study smarter with the SolutionInn App