If a company has current assets of $15,000 and current liabilities of $9,500, its current ratio is 1.6
Answer the following statement true (T) or false (F)
True
Current Ratio = Current Assets/Current Liabilities
Current Ratio = $15,000/$9,500 = 1.6
You might also like to view...
Organizing and managing work groups and work teams is very challenging for managers. All of the following are principles of “team-driven companies” developed by McKinsey & Company EXCEPT:
a. Give leaders responsibility for processes and process performance b. Link performance objectives and evaluation of all activities to customer satisfaction c. Assign performance objectives to teams, not individuals d. Focus on individual performance and give rewards to individual group members e. All of the above are principles of “team-driven companies”.
The receipt of which of the following would be considered evidence of the recipient being in a
partnership, assuming all amounts are paid out of the profits of the partnership? A) Payment of wages earned by an employee B) A portion of the profits remaining after all other expenses have been paid C) Rent owed to a landlord D) Payment of the interest and principal on a debt
Chadwick Associates retained $850,000 of net income in the business in Year 1. If $75,000 was appropriated to satisfy the restrictive covenant of a loan agreement, what are the financial statements effects of the appropriation? Assets=Liab.+EquityRev.?Exp.=Net Inc.Cash flowA.NA=NA+NANA?NA=NANAB.(75,000)=NA+(75,000)NA?NA=NA(75,000) FAC.(75,000)=NA+(75,000)NA?75,000=(75,000)(75,000) FAD.(75,000)=NA+(75,000)NA?NA=NANA
A. Choice A B. Choice B C. Choice C D. Choice D
The principle of postponement is employed by a producer using a(n):
A) make-to-stock strategy. B) make-to-order strategy. C) assemble-to-order strategy. D) engineer-to-order strategy.