One of the most important assumptions behind the calculation of quick ratio is that: The firm’s...
One of the most important assumptions behind the calculation of quick ratio is that:
The firm’s accounts receivables will be collected late (after the expiration of the credit period) or are uncollectible
The firm’s accounts receivables can be collected and converted into cash within the time period for which credit was granted
The firm’s inventories are highly liquid and can be sold quickly with minimal loss of value to assist in the settlement of the firm’s financial obligations
Homework Answers
Quick ratio = Quick assets/Current liabilities
Quick assets include accounts receivables as they are assumed collected within the time allowed to them. Based on this assumption, accounts receivable was included.
Hence, correct option is “The firm’s accounts receivables can be collected and converted into cash within the time period for which credit was granted”.
Add Answer to:
One of the most important assumptions behind the calculation of
quick ratio is that:
The firm’s...
1st blank options = (1.33,2.83,1.83,2.53) 2nd blank options = (0.75, 0.93, 1.13, 0.90) 3rd blank options...
1st blank options = (1.33,2.83,1.83,2.53)
2nd blank options = (0.75, 0.93, 1.13, 0.90)
3rd blank options = (1.66, 3.16, 2.16, 2.86)
4th blank options = (0.75, 0.93, 1.12, 1.40)
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One of the most important applications of ratio analysis is to compare a company's performance with...
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I need help on the highlighted questiona. For questions 2,4, & 5 I need help with...
I
need help on the highlighted questiona.
For
questions 2,4, & 5 I need help with the step by step process to
the answers. Thanks!
what financial data do you need? i sent a photo of the assigment.
The last photo is of a balance sheet and income statement
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Required:
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1st blank options = (1.33,2.83,1.83,2.53)
2nd blank options = (0.75, 0.93, 1.13, 0.90)
3rd blank options = (1.66, 3.16, 2.16, 2.86)
4th blank options = (0.75, 0.93, 1.12, 1.40)
The most recent data from the annual balance sheets of East India Inc. (Em) and wante Corporation are given Balance Sheet For the Year Ending on December 31 (Millions of dollars) ETT Vallante ETI Vallante Liabilities Equity Current asset Current abilities: Accounts payable Cash Accounts receive 287 105 308 700 1845...
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I
need help on the highlighted questiona.
For
questions 2,4, & 5 I need help with the step by step process to
the answers. Thanks!
what financial data do you need? i sent a photo of the assigment.
The last photo is of a balance sheet and income statement
QUESTIONS 1. Give as many reasons as you can why Moore's initial estimate of the value of the restaurant was inappropriate. 2. Calculate the current liquidation value of the business assuming...
Questions: For Kroger deposits in transit: What is
the account titled Store deposits in-transit (refer to footnote 1)?
This is not an account you will find on the majority of company
financial statements. Why does Kroger include this account? Is it
odd that this account is larger than the cash balance? How do you
explain this?
Information Needed to Answer Questions:
Jan. 28, 2017 Jan. 30, 2016 $322 910 1,649 7,852 (1,291) 898 $ 277 923 1,734 7,440 (1,272) 790 9,892...
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2. Compute Apple’s accounts receivable turnover as
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3. How long does it take, on average, for
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cash and cash equivalents, (b) short-term marketable
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