Why is the quick ratio probably better than the current ratio as a measure of short-term liquidity?
The current ratio includes all current assets in its numerator, including somewhat liquid or nonliquid items. The quick ratio is a better measure of short-term liquidity because it includes only those current assets that are highly liquid (cash, receivables, and short-term investments).
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Wadsworth Distribution Company has total advertising expenses of $84,000: $32,000 for radio and $52,000 for print advertising. The expense for print advertising is allocated to Department A and Department B based on the total of net sales represented by each department. The total net sales for Wadsworth Distribution Company is $744,000 . The net sales generated are $558,000 and $186,000 for
Department A and B, respectively. How much of the expense for print advertising should be allocated to Department A? a. $13,000 b. $39,000 c. $63,000 d. $21,000
Giving examples, show how sampling can be an effective sales promotion technique
What will be an ideal response?
Under the perpetual inventory system
A) the cost of each item is recorded in the Merchandise Inventory account when it is purchased. B) when an inventory item is sold, its cost is transferred to the Cost of Goods Sold account. C) the balance of the Merchandise Inventory account equals the cost of goods on hand. D) All of these choices.
List and define the four standards for evaluating accounting that are at the heart of ASOBAT.
What will be an ideal response?