True or False? The acid-test ratio measures a company's ability to pay all its current liabilities if they came due immediately.
True | |
Acid test ratio which is also called quick ratio is a Solvency ratio which measures the company's ability to pay its current liabilities if they become due immediately |
True or False? The acid-test ratio measures a company's ability to pay all its current liabilities...
Which of the following measures a company's ability to pay its current liabilities? earnings per share inventory turnover times interest earned current ratio
Clear All Current ratio A measure of a company's ability to pay its short-term liabilities out of short-term assets Debt ratio A measure that compares only the most liquid assets to current liabilities Times-interest-earned ratio An income statement measure of the ability of a company to service its debts Quick ratio A measure of the degree of protection afforded creditors in case of insolvency Debt-to-equity ratio A ratio that indicates what proportion of equity and debt a company is using...
Question Help A company's ability to pay liabilities with current assets is measured by which of the following ratios? O A. Current ratio O B. Day's sales in receivables O C. Acid - test ratio OD. Inventory turnover ratio
The Current Ratio assesses a company's ability to pay its debts in the near term and is expressed as current assets / current liabilities. Given the following information, what is Bell Company's current ratio? Cash 5,000 Supplies 3,000 Accounts Receivable 12,000 Land 40,000 Accounts Payable 2,000 Unearned Service Revenue 3,000 Long-Term Debt 15,000 Service Revenue 10,000 a. 1.0 Time b. 3.0 Times C. 4.0 Times d. 8.0 Times
Large Limb Photo Shop has asked you to determine whether the company's ability to pay current liabilities and total liabilities improved or deteriorated during 2016. To answer this question, you gather the following data EEE (Click the icon to view the data.) Compute the following ratios for 2016 and 2015. and evaluate the company's ability to pay its current liabilities and total liabilities: a. Current ratio b. Cash ratio c. Acid-test ratio d. Debt ratio Debt to equity ratio e....
5. 5. The current ratio measures: A) The ability of a company to quickly sell its inventory to customers. B) The amount of profits retained in the business. C) The ability of a company to quickly collect cash from customers. D) The ability of a company to pay its current obligations.
Autumn Frames has asked you to determine whether the company's ability to pay current liabilities and total liabilities improved or deteriorated during 2017 To answer that question, compute these ratios for 2017 and 2016, using the following data (Click the icon to view the financial information) Read the requirements a. Current ratio Enter the formula on the first line, then calculate the ratio for each year (Round your answers to two decimal places) Current rato 2017 2010 - X Data...
1. The quick ratio, measured by current assets less inventories divided by current liabilities, is also referred to as an "acid test" ratio and provides a measure of a company's ability to meet current obligations. a. True b. False 2. Shorter-term cash budgets, in general, are used for actual cash control while longer-term budgets are used primarily for planning purposes. a. True b. False 3. A just-in-time system of inventory control requires that manufacturers coordinate production with suppliers so that...
7. The current ratio and quick ratio analysis can belp creditors can ability to pay its current liabilities A True B. False creditors evaluate a company's 8. Which of the following is a characteristic of a corporation? A A corporation has a limited life. B. A corporation is not taxed on the corporation's business income. C. The owners of a coronation have limited liability for the corporation D. All of the above ll outstanding 9. Shares of stock that has...
A company's current assets are $29,920, its quick assets are $16,490 and its current liabilities are $12,870. Its acid-test ratio equals: