Suppose you work for a small manufacturing company and the president said that you must improve your current ratio. Would you interpret this to mean that you should increase it or decrease it?
Answer to relevant Questions“It’s easier to learn accounting if you avoid real-world examples.” Do you agree? Explain.What is a CPA, and how does someone become one? What is a CA? The accounting process in use today is typically called “double-entry” bookkeeping. Discuss the meaning and possible importance of this name. Suppose the current ratio for your company changed from 2 to 1 to become 1.8 to 1. Would you expect the level of working capital to increase or to decrease? Why? “Any company that has income before interest and taxes greater than its interest expense is a relatively safe investment for creditors.” Do you agree? Explain.
Post your question