Describe the differences between the liquidity ratios, solvency ratios and profitability ratios. Identify examples of each type of ratio as well.
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Liquidity ratios indicate a company's ability to pay short-term debts. They focus on current assets and current liabilities. Examples include current ratio, quick ratio, accounts receivable ratios, and inventory ratios. Solvency ratios are used to analyze a company's long-term debt-paying ability and its financing structure. Solvency ratios include debt to assets ratio, debt to equity ratio, and times interest earned ratio. Profitability measures concern a company's ability to generate earnings. These ratios include net margin, asset turnover ratio, return on investment, and return on equity.
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The account that includes all the materials (both direct and indirect) acquired to be used in production is called ____________________
Fill in the blank(s) with correct word
Biglersville Corp purchased equipment at the beginning of 2016 for $16,000 . Biglersville Corp decided to depreciate the equipment over a 5-year period using the straight-line method. Biglersville Corp estimated the equipment's residual value at $1,000 . The estimated fair market value at the end of 2016 was $15,000 . Which of the following statements is correct concerning Biglersville Corp's
financial statements at December 31, 2016? a. The book value of the equipment is $30,000. b. The book value of the equipment is $13,000. c. The total accumulated depreciation is $1,000. d. The equipment will be reported on the balance sheet at it fair market value of $15,000.
Distribution resource planning (DRP) is:
A) a transportation plan to ship materials to warehouses. B) a time-phased stock replenishment plan for all levels of a distribution network. C) a shipping plan from a central warehouse to retail warehouses. D) material requirements planning with a feedback loop from distribution centers. E) a material requirements planning package used exclusively by warehouses.
PowerSoft Corporation creates an internal social media network using enterprise social networking software and systems. Concerns about the use of an internal social media network include how to
a. keep the data safe. b. make the data public. c. provide access to all files to all employees. d. maintain a personal, lively, and entertaining tone.