Homework Answers
ANSWERS
13) option B is correct
the ability to pay the debts the debts of the company as they become due
Explanation : generally liquidity means ability of a company or a business to pay it's debts as they become due. Or simply converting assets into cash
14)option B is correct
The ability to increase retained earningso
Explanation : retained earning increases when company got more profits. If retained earnings of the company increases it indicates profitability
15) option C is correct
Losses from unprofitable operation of the business
Explanation : if you repay loan or debt it doesn't decreases the shareholders equity.
Equity is different from the outsiders debt.
16) option B is correct
$67500
Explanation : assets = liabilities+equity
Equity = assets - liabilities = $270,000 - $202,500 = $67500
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13. Which of the following best describes liquidity? A. The ability to increase the value of...
The ability of a business to pay its debts as they come due and to earn...
The ability of a business to pay its debts as they come due and to earn a reasonable amount of income is referred to asa. solvency and leverageb. solvency and profitabilityc. solvency and liquidityd. solvency and equity
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ch14: 2. Other dividend policy issues Several factors affect a firm's ability to pay a dividend....
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only the final answers plz 1. Which definition below best describes financial accounting? A. Process of...
only the final answers plz
1. Which definition below best describes financial accounting? A. Process of measuring income taxes owed to the government. B. System of maintaining communication with a company's customers and suppliers. C. Procedures designed to enhance the company's image to potential investors. D. Measuring business activities and communicating them to external parties. 2. Liabilities can be best described as: A. The amount of expenses over the past year. B. The amount expected to be distributed to stockholders....
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only the final answers plz
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