How is the current ratio calculated, and how is it interpreted?
The current ratio is calculated by dividing current assets by current liabilities. The current ratio measures a company's liquidity. A company's current ratio needs to be greater than "1" for them to be considered "liquid". However, too high of a current ratio could mean that a company is holding too much cash, accounts receivable, or inventory. A current ratio less than "1" would be a cause of concern. Decision-makers would question whether the company could meet their obligations in the short run.
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To meet new legal and regulatory requirements, companies may ______.
A. introduce poor quality products B. redesign existing products C. refurbish used products D. recycle old models of products
In year 1, Southern Construction agrees to construct a school building for $12,000,000, receiving payments for the work of $6,000,000 in both year 1 and year 2 . Southern estimates that the costs will be $4,000,000 in Year 1 and $6,000,000 in Year 2 . If Southern uses the percentage-of-completion method (based on total costs), what amount of profit is recognized in each year of the contract? Year
1 Year 2 a. $0 $2,000,000 b. $2,000,000 $0 c. $1,000,000 $1,000,000 d. $800,000 $1,200,000 e. $2,000,000 $1,000,000
ISO 9001 standard is intentionally _________ so that it can be applied to any given organization, public or private.
a) comprehensive b) variable c) generic d) process-specific
Which of the following accounts for the second largest amount of paid online content revenues in the United States in 2015?
A) online video games B) Internet radio C) online music D) online TV and movies