Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on May 29, 2021

Payment of a trade account payable of $64,500 would a.Increase the current ratio but the quick ratio would not be affected. b.Increase the quick ratio

Payment of a trade account payable of $64,500 would

a.Increase the current ratio but the quick ratio would not be affected.

b.Increase the quick ratio but the current ratio would not be affected.

c.Increase both the current and quick ratios.

d.Decrease both the current and quick ratios

Step by Step Solution

★★★★★

3.42 Rating (161 Votes )

There are 3 Steps involved in it

Step: 1

Option D is correct Would decrease both current ratio and a q... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

Step: 3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Corporate Finance A Focused Approach

Authors: Michael C. Ehrhardt, Eugene F. Brigham

4th Edition

1439078084, 978-1439078082

More Books

Students also viewed these Finance questions

Question

★★★★★

Consider the following events related Mr. Masood, the owner of a retail shop in Ibri. 1 Masood gifted a watch to his staff Ms. Zainab on the occasion of her marriage. 2 Paid rent for the staff...

Answered: 1 week ago

Question

★★★★★

Andy says to Brooke 'buy Cecelia's house or I will kill your brother, Dan'. If Brooke subsequently purchases Cecelia's house, which of the following vitiating factors will impact the contract? A....

Answered: 1 week ago

Question

★★★★★

The current and quick ratios have two limitations. These ratios a. emphasize the ineffectiveness of analysts' calculations and focus on liquid assets at a point in time instead of a period of time....

Answered: 1 week ago

Question

★★★★★

The study of the new CPMP Mathematics methodology described in Exercise 57 also tested students' abilities to solve word problems. This table shows how the CPMP and traditional groups performed. (The...

Answered: 1 week ago

Question

★★★★★

What is a critical path and why should you identify it for the business you want to start?

Answered: 1 week ago

Question

★★★★★

Amazon.com, lnc.'s financial statements are presented in Appendix D. Financial statements of Walmart Inc. are presented in Appendix E. The complete annual reports of Amazon and Walmart, including the...

Answered: 1 week ago

Question

★★★★★

4. Communicate in appropriate waysuse the familys first language when possible. Tailor messages to the reading level of the home.

Answered: 1 week ago

Question

★★★★★

Best Appliances is a retail store that sells household appliances. Merchandise sales are subject to an 8 percent sales tax. The firm's credit sales for July are listed below, along with the general...

Answered: 1 week ago

Question

★★★★★

Prove that undirected graph can be oriented so that every vertex v would have | deg ^ + v deg ^ v | Answered: 1 week ago

Answered: 1 week ago

Question

★★★★★

Consolidation related simulation example: Millennium Capital Management, Inc., (MCM) acquired a 90% interest in NextGen, Inc. MCM's Financial Manager, Matthew Steven, has prepared a draft memo to the...

Answered: 1 week ago

Question

★★★★★

(CO 3} Recent test scores on the Law School Admission Test {LSAT} are normally.r distributed with a mean of 152.4 and a standard deviation of 15.9. What is the probability that the mean of 12...

Answered: 1 week ago

Question

★★★★★

Elmwood City incurred the following transactions during the year. Use the lines provided below and on the following pages to prepare journal entries to record each transaction and identify the fund...

Answered: 1 week ago

Question

★★★★★

3. (20 points) Consider a circular dart board with radius 1 that is inscribed in a square frame: (-1,1) (-1,-1) (1,1) (1,-1) Suppose you throw n independent darts at random into the square frame and...

Answered: 1 week ago

Question

★★★★★

your answer: Y1 2t2 = Y2 = t Which function(s), if any, are solutions to 2t2y" + 3ty' - y = 0? Be sure to briefly justify

Answered: 1 week ago

Question

★★★★★

Please solve COMPANY NAME: HONDA Brief introduction to company and its product Presentation of global inputs for the product Company's motivations for supplier selection and sourcing the inputs...

Answered: 1 week ago

Question

★★★★★

1.Now imagine that, with the introduction of money, financial institutions are put in place. Briefly , would the establishment and development of a financial sector help promote economic growth or...

Answered: 1 week ago

Question

★★★★★

The following information is an extract from the trial balance for XCB Co on 30 March 20X4: R 6 536 000 629 000 337 000 2 305 000 Purchases Distribution costs Inventory on 31 March 20x3 Plant and...

Answered: 1 week ago

Question

★★★★★

A city maintains a solid waste landfill that was 12 percent filled at the end of Year 1 and 26 percent filled at the end of Year 2. During those periods, the government estimated that total closure...

Answered: 1 week ago

Question

★★★★★

What are the expected dividend yield, the capital gains yield, and the total return during the first year?

Answered: 1 week ago

Question

★★★★★

Washington-Pacific invested $4 million to buy a tract of land and plant some young pine trees. The trees can be harvested in 10 years, at which time W-P plans to sell the forest at an expected price...

Answered: 1 week ago

Question

★★★★★

What is interest rate (or price) risk? Which bond has more interest rate risk, an annual payment 1-year bond or a 10-year bond? Why?

Answered: 1 week ago

Question

★★★★★

How are the various costs that comprise cost of goods sold reflected in a "type of expenditure" format income statement?

Answered: 1 week ago

Question

★★★★★

Five factors are often mentioned as affecting a country's accounting practices: (a) legal system, (b) taxation, (c) providers of financing, (d) inflation, and (e) political and economic ties....

Answered: 1 week ago

Question

★★★★★

Cultural dimension index scores developed by Hofstede for six countries are reported in the following table: Required: Using Gray's hypothesis relating culture to the accounting value of secrecy,...

Answered: 1 week ago

Previous Question Next Question