Question: 1. The quick ratio is considered more useful than the current ratio for: a Evaluating the profitability of a business that sells inventory very quickly,

1.The quick ratio is considered more useful than the current ratio for:

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

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

cEvaluating long-term credit risk.

dEvaluating investors' expectations concerning future earnings.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Q:

ERCISES 1. Chen's Dental Practice opened on January 1, 2017. During the first month of opera- tions, the following transactions occurred. 1. Performed services for patients totaling HK$7,850, which...

Q:

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

Q:

The quick ratio is considered more useful than the current ratio for: Evaluating the profitability of a business that sells inventory very quick restaurant. Evaluating the solvency of a business that...

Q:

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...

Q:

Hi, I was wondering if you can help me with some financial accounting work? I need help in computing the numbers for Forecast Values for 2024 for Humana using the information below. I have a sample...

Q:

this page shows what is required and the instructions wanted from the auto nation financial statement I provided thanks the image is very clear I took photos several times , my phone is very old and...

Q:

common size income statement Prepare a spreadsheet with common size income statements for 2019 and 2018 fiscal years. You do not need to do 2017. please prepare the income statement nothing else can...

Q:

please calculate the following ratios using the info below the ratios I provided what do you mean I posted the whole b/s with its numerical values I'll post it again ECHIBIT 14-26 Summary of...

Q:

Internet Case 14.5 Evaluating Liquidity and Profitability (MUST POST FIRST) Initial Post As an employee, write an internal memo to your manager addressing the following: Use the Internet search...

Q:

Please provide a page and a half paper to answer the following question: Major factors company should be aware of/evaluate regarding future investments projects. Use the attachments to answer the...

Q:

CASE STUDY CASE STUDY ANALYSIS OF HASBRO, INC. The management of Hasbro, Inc. has approached your company concerning the operations of their business. Recognizing the importance of analyzing past...

Q:

You have purchased a $100K T-bill 98 days prior to maturity for $99519. You have decided to sell the T-bill 37 days later earning you a yield of 3.1% p.a from the purchase price. What did you sell...

Q:

If event marketing and sponsorships are so difficult to measure for tangible business results, why do so many large and prosperous companies pursue such associations? What are the advantages and...

Q:

II . a ) What do we mean by y 6 in terms of positive exponents? Give a general formula for expressing negative exponents in terms of positive exponents, i . e . , state y n =

Q:

Parent acquired 100% of Subsidiary on December 31, 20X0, when its net book values and fair values were as follows. Note Note Receivable Payable 7 Term Interest rate 4.20% 4.50% Remaining useful life...

Q:

Refer to the data on water rates at https://www.tucsonaz.gov/water/residential-rates-and-monthly-charges for this question. a) Use the table of Usage Charges for a single-family residential customer...

Q:

2. Change the total fixed manufacturing overhead cost for the Milling Department in the area back to $390,000, keeping all of the other data the same as in the original example. Consider a new job,...

Q:

You have an opportunity to purchase a 5-story multifamily building which is presently vacant. The asking price is $500,000. After discussing the project with your architect and general contractor,...

Q:

A system consisting of 1 kg of H2O undergoes a power cycle composed of the following processes: Process 1-2: Constant-pressure heating at 10 bar from saturated vapor Process 2-3: Constant-volume...

Q:

A flower distributor is interested in pooling its distribution centers that currently service two separate markets. Suppose each market has an average demand of 500 units and a standard deviation of...

Q:

Always show respect for the other person or persons.

Q:

Self-awareness is linked to the businesss results.

Q:

1. Too reflect on self-management