What is removed from current assets in order to calculate the Quick Ratio? marketable securities cash trade receivables Civentory

Q: Where are gains and losses related to cash flow hedgesinvolving anticipated transactions reported?

A: Derivatives: Derivative is a product whose value is derived from underlying assets called base.…

Q: How do you compute the receivables turnover ratio?

A: Receivables turnover (RT) ratio: this is an accounting measure which shows the effectiveness of a…

Q: Describe the Ratios that show the relationship of a firm's cash and other assets to its current…

A: Definition: Ratio analysis: It is the financial analysis tool for measuring the profitability,…

Q: Explain what is the risk component of financial assets.

A: Risk can be described as the likelihood of an unexpected or negative outcome. Any act or activity…

Q: prese vesting activities se ent of cash flows? * n of accounts receivab chases of inventories

A: Investing activities of statement of cash flow represents inflow or outflow of cash related to…

Q: factored. What is the total cash received from the financing of receivables?

A: Loan is the amount that an individual, company, or corporation owed for financing its activities and…

Q: d o

A: The correct answer is  C) Traffic speed of suppliers

Q: Bank Intermediation Ratio also used to assess its liquidity*     Capital to Loans Ratio Deposits to…

A: Liquidity in banking is the ability of a bank to meet short-term business and financial obligations…

Q: * ?Which one of the following is correct The term 'Sales' include the sales of fixed assets for cash…

A: Sales means the amount recorded in books as revenue earned by selling the goods or services. Account…

Q: In preparing a cash flow statement which of the following is a cash inflow? A. Issue of Debentures…

A: When Company issues the debenture, then the debenture holder has to pay the amount for the…

Q: Vertical analysis can be used to analyze changes except a. on a balance sheet. O b. on an income…

A: The vertical analysis is performed to analyse the various elements of financial statements during…

Q: How much should be presented as "Trade and other receivable" under current assets?

A: Particulars Amount (P) Trade Receivables 725000 Trade Notes Receivables 100000 Less: Sales…

Q: What are the major advantages of notes to the financialstatements? What types of items are usually…

A: Notes to financial statements can be the information which is left out from the balance sheet and…

Q: The current ratio is: Multiple Choice Cash, short-term investments, and accounts receivable divided…

A: Solution: The Current ratio is a ratio which is considered as a liquidity ratio. It represents…

Q: Describe the two ratios used byfinancial analysts to monitor a company’s investment in receivables.

A: Ratio:   A ratio is a number expressed in terms of another to establish relationship between them.

Q: Quick assets include cash,  temporary investments,  inventory,  and receivables.   True or false?

A: Quick assets: Quick assets refer to those assets that can be immediately and easily converted into…

Q: the liquidity- cash ratios, quick ratios and current ratios.

A: Current Ratio = Current Assets/Current Liabilities 2019 = 12,837,699/5,735,569 = 2.238 2020 =…

Q: Current assets under IFRS are listed generally: a.    by importance. b.    in the reverse order of…

A: Current assets: The assets which could be converted into cash within one year like accounts…

Q: Discuss the conversion from cash basis to accrual basis of an increase in accounts or notes payable…

A: Under the cash basis of accounting, business transactions are only recorded when the cash related to…

Q: When a firm sells its accounts receivable to raiseshort-term cash, it is engaging in a…

A: Factoring is a type of financial transaction in which a business sells its accounts receivable to a…

Q: Why are investments in marketable securities shown sepa-rately from cash equivalents in the balance…

A:

Q: Establish a compensatory equilibrium. In financial statements, how are compensating balances…

A: Here is the Answer

Q: Arrange the following items in current assets according to its liquidity:   A . Cash, Inventories,…

A: The company’s  generally  lists  the current assets according to its liquidity in order to  Knowing…

Q: Define the following terms: inventory conversion period, average collection period,and payables…

A: An inventory conversion period is equal to the number of days between the date that materials are…

Q: The accounts receivable turnover and inventory turnover are used to analyze O long-term solvency. O…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: What is meant by liquidity? Rank the following assetsfrom one to five in order of liquidity.(a)…

A: Liquidity: Liquidity is the capability of a company to pay the short-term liabilities which are due.…

Q: Explain how factoring works. Of what benefit is factoring to a firm that sells its receivables?

A: Lets first understand the meaning of factoring. Factoring is a selling the debtor to the factor at…

Q: The best approach to measuring liquidity takes into account changes over time in both liquidity…

A: Liquidity ratios: They are considered as an important class of metrics in finance which is used to…

Q: The balance sheet account that is usually reported at its fair market value is: a. Short-term…

A: The assets can be classified fixed assets and current assets. The assets are recorded in balance…

Q: Choose Current ratio Asset turnover ratio Inventory turnover ratio Receivables turnover ratio

A: Liquidity ratios: Liquidity ratios measure the short-term capacity of a company to pay its maturing…

Q: Name the assumption requires that financial statement elements be measured in nominal units of…

A:

Q: The analysis of a firm's liquidity includes all of the following except Multiple Choice Current…

A: The liquidity ratio indicates the liquid on the business entity. It includes ratios is like current…

Q: Quick assets include which of the following?     "Cash, prepaid rent, and receivables."     "Cash,…

A: Quick Assets include followings-

Q: What does mean "Marketable securities" in the current asset of a balance sheet?

A: Current Assets are those assets from which the organization can derive economic benefits within one…

Q: Describe how volatile the payout ratios are based on earnings and cash flows.

A: Dividends payout ratio can be defined as the paying out the dividends to its shareholders on the…

Q: How do you decide the liquidity order (what asset come before the other...expenses vs prepaid vs…

A: Classified balance sheet: The main elements of balance sheet assets, liabilities, and stockholders’…

Q: what the meaning of current assets ratio?

A: Assets are the rights and resources being held by the business. Assets that are either in cash or…

Q: How to find Total Debt to Total Assets ration using an income statement, balance sheet or cash flow.

A: Total-debt-to-total-assets is the leverage ratio that describes a company's total debt in relation…

Q: The numerator for the quick ratio is calculated by: Select one: a. Deducting inventory and prepaid…

A: The question is related to Ratio Analysis. The Quick Ratio is sometimes called the "acid-test" ratio…

Q: What is meant by liquidity? Rank the following assets from one to five in order of liquidity.…

A: Liquidity is the time period within which an asset can be converted into Cash or a Liability is…

Q: Calculate the asset efficiency - receivables turnover ratios, inventory turnover ratios, fixed asset…

A: Receivable Turnover ratio = Revenue/Receivables 2019 = 5,655,661/2,515,982 = 2.248 2020 =…

Q: What are the key variables that influence a company’s investment in receivables?

A: The variables that influence the company investment in receivables are as follows, The level of…