The current ratio shows a company’s ability to meet its short-term obligations. The ratio is calculated by dividing current assets by current liabilities. An asset is considered current if it can be converted into cash within a year or less, while current liabilities are obligations expected ...
services.The taxpayer shall compute the output tax for the period on the basis of t he sales value and collect the tax payable from the purchasers in addition to the pay ment on goods and services. If the sales prices of the goods and services are tax inclusive prices,the taxpayers have ...
The current asset sub-accounts are normally displayed on the balance sheet in order of current asset liquidity. Those that are most easily converted into cash are ranked higher by the finance division or accounting firm that prepared the report. The order in which these accounts appear might vary...
that wouldn't normally be considered debt or equity in the traditional sense of a loan or an asset. The ratio can be distorted byretained earningsor losses, intangible assets, and pension plan adjustments so further research is usually needed to understand to what extent a company relies on ...
What is the formula for this ratio? Explain briefly. Explain how to compute accounting ratio liability divided assets. What is the difference between the current ratio and quick ratio? What does each measure? What is the difference between the current ratio and the quick ratio? What does ...
You compute the value of the penalty by multiplying the replacement cost ($500,000) with the multiplier, 0.25 (1 – 0.75). So by violating the coinsurance clause, you are not only unable to receive the full replacement cost, but you also have to pay a hefty penalty. ...
Why is this term useful in accounting? What do liquidity ratios represent? Give an example of one of them. Which ratios are used to measure liquidity? (a) What is the purpose of the liquidity ratio? (b) How is it used to determine the strengths and weaknesses of a company?...
I have updated and improvedthe results of the Trinity Study up to last year. Even with many more years of simulations and using monthly returns, the study’s results still hold to this day. Using an adapted withdrawal rate, we can survive up to 60 years. However, for most people, the ...
Gross Profit:Calculated by subtracting the cost of goods sold from the total revenue, the gross profit represents the profit made before accounting for other expenses. Operating Expenses:This category encompasses the day-to-day expenses incurred in running the business, including salaries, rent, utili...
How does the acid test ratio differ from the current ratio?___.答案为A项。stock“存货”，同inventory。酸性测试比率与流动比率的区别在于其在计算流动资产时，将存货排除在外。故本题选A项。