Generally, a high current ratio is an indicator of good liquidity. Under what circum-stances or conditions could
Question:
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 83% (12 reviews)
A high current ratio is associated with high cash receivables and inventory relative to current ...View the full answer
Answered By
Ali Khawaja
my expertise are as follows: financial accounting : - journal entries - financial statements including balance sheet, profit & loss account, cash flow statement & statement of changes in equity -consolidated statement of financial position. -ratio analysis -depreciation methods -accounting concepts -understanding and application of all international financial reporting standards (ifrs) -international accounting standards (ias) -etc business analysis : -business strategy -strategic choices -business processes -e-business -e-marketing -project management -finance -hrm financial management : -project appraisal -capital budgeting -net present value (npv) -internal rate of return (irr) -net present value(npv) -payback period -strategic position -strategic choices -information technology -project management -finance -human resource management auditing: -internal audit -external audit -substantive procedures -analytic procedures -designing and assessment of internal controls -developing the flow charts & data flow diagrams -audit reports -engagement letter -materiality economics: -micro -macro -game theory -econometric -mathematical application in economics -empirical macroeconomics -international trade -international political economy -monetary theory and policy -public economics ,business law, and all regarding commerce
4.00+
1+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Banking questions
-
What does a high current ratio indicate about a company?
-
Multiple-Choice questions: a. A companys current ratio is 2.2 to 1 and quick (acid-test) ratio is 1.0 to 1 at the beginning of the year. At the end of the year, the company has a current ratio of 2.5...
-
Why might a company have a high current ratio but a low quick ratio (acid test ratio)?
-
ABS plastic is a tough, hard plastic used in applications requiring shock resistance. The polymer consists of three monomer units: acrylonitrile (C3H3N), butadiene (C4H6, and styrene (C8H8). a. Draw...
-
Two independent random samples of sizes 18 and 24 were obtained to make inferences about the difference between two means.What is the number of degrees of freedom? Discuss both cases.
-
Indicate, in the sequence in which they are made, the three required steps in the accounting cycle that involve journalizing.
-
For each of the following sets of data, (1) calculate the mean of the scores \(\left(\mathrm{X}^{-} ight),(2)\) calculate the deviation of each score from the mean \(\mathrm{X}-\mathrm{X}^{-}\), and...
-
Rocky Guide Service provides guided 1-5 day hiking tours throughout the Rocky Mountains. Wilderness Tours hires Rocky to lead various tours that Wilderness sells. Rocky receives $1,000 per tour day,...
-
2. Simplify the following Boolean expressions (4 points) a. WX WXY WXYZ (W+X) b. A+ C(AC+ AB + BC) + A(B+ C) c. X+Y+Z+ (y + Z) (Y+Z) d. A(ABC + C)(A+ C)(AB + C)
-
You have prepared the following schedule for a project in which the key resource is a backhoe. This schedule is contingent on having 3 backhoes. You receive a call from your partner, Brooker, who...
-
Standard ratio analysis distinguishes between four categories of ratios. Describe how ratios in each category indicate strength or weakness in the underlying firms performance.
-
Explain how it is possible for a firm to report rising NI each year yet continue to need more working capital financing from a bank.
-
An investment dealer acquired a $10 000, 183-day Province of Quebec Treasury bill on its date of issue at a price of $9822.00. What was the annual rate of return?
-
During 2018, Alec Meachin earned a net profit of \(\$ 80,000\) from his sole proprietorship (as reported on Schedule C). He paid \(\$ 10,000\) self-employment taxes during the year. What is the...
-
How much may be contributed annually to a defined contribution Keogh plan?
-
John and Mary Hughes file their income tax return on a calendar year basis. John dies on May 15, 2018. Mary remarries on July 4, 2018. Can Mary file a joint return with John for the taxable year 2018?
-
In problem 49, when does the estate's taxable year end? problem 49, John Henry died on May 1, 2018. When does his final 1040 have to be filed?
-
If Doria Oliva dies this year (2018), what estate tax is payable if the facts are: Adjusted gross estate $11,510,000 Adjusted taxable gifts after 1976 Gift tax paid 100,000 6,000
-
Write each rational expression in lowest terms. 7-b b-7
-
Coastal Refining Company operates a refinery with a distillation capacity of 12,000 barrels per day. As a new member of Coastal's management team, you have been given the task of developing a...
-
If higher money growth is associated with higher future inflation, and if announced money growth turns out to be extremely high but is still less than the market expected, what do you think would...
-
Can we expect the value of the dollar to rise by 2% next week if our expectations are rational?
-
Human fear is the source of stock market crashes, so these crashes indicate that expectations in the stock market cannot be rational. Is this statement true, false, or uncertain? Explain your answer.
-
You are the HR Director of AAA insurance company and until now you have taken a traditional approach to recruitment and selection. However, you have been noticing modern trends around the use of...
-
What are the different types of visual aids that can be used in public speaking, and why are they effective?
-
What are the types of sources that can be used in public speaking, and what instances (e.g., type of speech, target audience) is each source type appropriate,what is the reasoning for using each type?
Study smarter with the SolutionInn App