Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 28, 2024

The quic ratio is considered more useful than current ratio for Evaluating profitability of a business that sells inventory very quickly, such as a restaurant.

The quic ratio is considered more useful than current ratio for

Evaluating profitability of a business that sells inventory very quickly, such as a restaurant.

Evaluating the solvency of a business that turn inventory into cash very slowly, such as shipbuilder .

evaluating long term credit risk

evaluating investorss expectation concerning future earnings.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

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

Fanatical Prospecting The Ultimate Guide To Opening Sales Conversations And Filling The Pipeline By Leveraging Social Selling Telephone Email Text And Cold Calling

Authors: Jeb Blount, Mike Weinberg

1st Edition

1119144752, 978-1119144755

More Books

Students also viewed these Finance questions

Question

★★★★★

Shaws Strategy Colin Shaw has been tapped to be an accounting project manager for the second time this year. Although he enjoys the challenges and opportunity for personal development afforded to him...

Answered: 1 week ago

Question

★★★★★

Which of the correct design principle has been considered when MIPS requires exactly have 3 operands. a. Simplicity favors regularity. b. Smaller is faster. c. Abstraction allows simplicity in...

Answered: 1 week ago

Question

★★★★★

Explain the factors that cause changes (shifts) in AS.

Answered: 1 week ago

Question

★★★★★

During 2015, Merkley Company disposed of three different assets. On January 1, 2015, prior to their disposal, the accounts reflected the following: The machines were disposed of in the following...

Answered: 1 week ago

Question

★★★★★

Your car dealer is willing to lease you a new car for $279 a month for 72 months. Payments are due on the first day of each month starting with the day you sign the lease contract. If your cost of...

Answered: 1 week ago

Question

★★★★★

Beth, 15, enters into a written contract with Joan, also 15. In the contract, Beth agrees to do Joan's math homework for two weeks for $50, which Joan agrees to pay at the end of the two-week period....

Answered: 1 week ago

Question

★★★★★

Consider the following abbreviated financial statements for Cabo Wabo, Inc.: CABO WABO, INC. Partial Balance Sheets as of December 31, 2015 and 2016 2015 2016 2015 2016 Assets Liabilities and Owners'...

Answered: 1 week ago

Question

★★★★★

Create a PivotTable to show the price per unit for each transaction. Insert the PivotTable on the Transaction worksheet. Place Trans Number as the row labels. Use an appropriate presentation of the...

Answered: 1 week ago

Question

★★★★★

8) Carpenter Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 600 units. The costs and...

Answered: 1 week ago

Question

★★★★★

5. Mary is planning to repay a debt of 75,000 with a quarterly payment $4,000 for the next 23 quarters and a final payment of "X" dollars at the end of 24-th quarter. If the interest rate is 12% per...

Answered: 1 week ago

Question

★★★★★

Problem 3-5A (Algo) Applying the accounting cycle LO P1, P3, P4, P5, P6 On April 1, Jiro Nozomi created a new travel agency, Adventure Travel. The following transactions occurred during the companys...

Answered: 1 week ago

Question

★★★★★

11. last word If a country like Greece that has joined the European Monetary Union can no longer use an independent monetary policy to offset a recession, what sorts of fiscal policy initiatives...

Answered: 1 week ago

Question

★★★★★

5. Suppose that the Fed is fixing the dollar-pound exchange rate at $2.50 = 1. If the Feds reserve of pounds falls by 500 million, by how much would the supply of dollars increase, all other things...

Answered: 1 week ago

Question

★★★★★

1. An American company wants to buy a television from a Chinese company. The Chinese company sells its TVs for 1,200 yuan each. The current exchange rate between the U.S. dollar and the Chinese yuan...

Answered: 1 week ago

Previous Question Next Question