ZuoTi.Pro
Question

Which of the following statements is true? Multiple Choice Lower current ratios suggest greater liquidity. Companies should m

Which of the following would not likely appear on a classified balance sheet? Multiple Choice Current assets Long-term liabil

business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Answers

  • #1
    Correct Answer = Option #3
    Higher Current Ratios suggest greater liquidity.
    This is because Current ratio = Current Assets / Current Liabilities.
    Higher current ratio means that amount of current assets are MORE than compared to the current Liabilities to pay.
  • #2
    Correct Answer = Option #3
    Current Retained earnings would not likely be appearing on a classified Balance Sheet.
    Actuallly, only ‘retained earning’ will appear.
0 0
Add a comment
Know the answer?
Add Answer to:
Which of the following statements is true? Multiple Choice Lower current ratios suggest greater liquidity. Companies s...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Question 7 Which of the following statements is true? Liquidity ratios measure a company's long-term ability...

    Which of the following statements is true? Liquidity ratios measure a company's long-term ability to pay debt. Solvency ratios measure a company's ability to repay current debt. A high liquidity ratio generally indicates that a company has a greater ability to meet its current obligations. Solvency ratios measure a company's ability to survive on a short-term basis.

  • ssignment 04 - Analysis of Financial Statements 2. Liquidity ratios Аа д Most firms borrow money...

    ssignment 04 - Analysis of Financial Statements 2. Liquidity ratios Аа д Most firms borrow money to finance some of their assets, and most will choose to borrow some long-term funds and some short- funds. Which group of lenders would put greater emphasis on a firm's liquidity ratio when evaluating a potential borrower? Long-term lenders Short-term lenders The most recent data from the annual balance sheets of N&B Equipment Company and Jing Foodstuffs Inc. are as follows: Jing Foodstuffs Inc....

  • Financial​ ratios: Liquidity. The financial statements for Tyler​ Toys, Inc. are shown below: Calculate the current​...

    Financial​ ratios: Liquidity. The financial statements for Tyler​ Toys, Inc. are shown below: Calculate the current​ ratio, quick​ ratio, and cash ratio for Tyler Toys for 2013 and 2014. Should any of these ratios or the change in a ratio warrant concern for the managers of Tyler Toys or the​ shareholders? Tyler Toys, Inc. Income Statement for Years Ending December 31, 2013 and 2014 2014 2013 Revenue $14,146,664 $13,566,518 Cost of goods sold $-8,447,425 $-8,131,347 Selling, general, and administrative expenses...

  • Liquidity ratios explain a company’s…..( text and citation needed) 1 The specific Liquidity ratios: Current and...

    Liquidity ratios explain a company’s…..( text and citation needed) 1 The specific Liquidity ratios: Current and & Quick ratios mean what? ….. (see and cite text) 2 Wal-Mart’s Liquidity ratios: what is the three-year trend? 3 Which trend needs elaboration? … To continue this positive trend Wal-Mart should Or …. To address this negative trend Wal-Mart must WalMart Inc Balance sheet(s) WalMart Inc Income Statement s) Period Ending ..2015 .2014 ..2013 Supplier Purchases) Cost of Goods Sold Selling and General...

  • Which of the following statements is true? A. The use of the current ratio does not...

    Which of the following statements is true? A. The use of the current ratio does not make it possible to compare companies of different sizes. B. A current ratio of 1.2 to 1 indicates that a company’s current assets are less than its current liabilities. C. All companies, regardless of size, should have a current ratio of at least 2:1. D. The current ratio is a more dependable indicator of liquidity than working capital.

  • Liquidity ratios

    1. Liquidity ratiosA liquid asset can be converted quickly to cash with little sacrifice in its value.Which of the following asset classes is generally considered to be the least liquid?Accounts receivableInventoriesCashPoints:1 / 1Close ExplanationExplanation:In the event of a liquidation, inventories tend to recover the least amount of their stated value. Cash will not lose value, and accounts receivable are likely to retain their value if there are no bad debts. That is why the quick ratio adjusts current assets by...

  • Which of the following statements concerning liquidity and debt is true? A) The greater use of...

    Which of the following statements concerning liquidity and debt is true? A) The greater use of short-term debt, the lower the risk of illiquidity. B) Long-term debt is generally less costly than short-term debt. C) A firm can reduce its risk for illiquidity by shifting from short-term debt to long-term debt. D) The risk of illiquidity does not depend on the mix of short-term versus long-term debt.

  • Correctly answer each part of question 2 2 Liquidity ratios Aa Aa Most firms borrow money...

    Correctly answer each part of question 2 2 Liquidity ratios Aa Aa Most firms borrow money to finance some of their assets, and most will choose to borrow some long-term funds and some short-term funds. Which group of lenders would put greater emphasis on a firm's liquidity ratio when evaluating a potential borrower? Short-term lenders O Long-term lenders follows: The most recent data from the annual balance sheets of N8B Equipment Company and Scramouche Opera Company are as Balance Sheet...

  • 5. Profitability ratios Profitability ratios help in the analysis of the combined impact of liquidity ratios,...

    5. Profitability ratios Profitability ratios help in the analysis of the combined impact of liquidity ratios, asset management ratios, and debt management ratios on the operating performance of a firm. Your boss has asked you to calculate the profitability ratios of Petroxy Oil Co. and make comments on its second-year performance as compared to its first-year performance. The following shows Petroxy Oil Co.'s income statement for the last two years. The company had assets of $11,750 million in the first...

  • 1. Which of the following BEST describes a company's proper liquidity management? Multiple Choice Liquitity management...

    1. Which of the following BEST describes a company's proper liquidity management? Multiple Choice Liquitity management is a balancing act; managers try to find liquidity levels that are neither too high not too low. A Financial Manager will try to keep as much cash on the books as possible to maximize short-term earnings. A company should never keep cash in its account because bond coupon payments can be deferred for up to a year without penalty. Liquidity levels that are...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT