If a company's current ratio increases from 1.2 to 1.4 from one year to the next, and its acid test ratio decreases from 0.20 to 0.15 over the same time period, the most likely explanation is that:

Question

05-04-2021
Business

Answered

Welcome to Westonci.ca, the place where your questions are answered by a community of knowledgeable contributors. Discover a wealth of knowledge from experts across different disciplines on our comprehensive Q&A platform. Our platform provides a seamless experience for finding reliable answers from a network of experienced professionals.

If a company's current ratio increases from 1.2 to 1.4 from one year to the next, and its acid test ratio decreases from 0.20 to 0.15 over the same time period, the most likely explanation is that:

Sagot :

Visit us again for up-to-date and reliable answers. We're always ready to assist you with your informational needs. We hope you found this helpful. Feel free to come back anytime for more accurate answers and updated information. Get the answers you need at Westonci.ca. Stay informed by returning for our latest expert advice.

An electron in a hydrogen atom moves from level 1 to level 4. The electron then drops from level 4 to level 2. Which statement describes the most likely result?

a. Define isotopes. Give any two examples of it.b. All the nuclei have nearly the same density. Justify. [2]c. A fusion reaction is more energetic than fission

What value of [tex]\( x \)[/tex] makes this proportion true?[tex]\[ \frac{25}{20} = \frac{x}{4} \][/tex]A. 5 B. 20 C. 9 D. 6

To make sure that all customers can access only approved resources, marie is auditing her public cloud identity systems. She wants to control specific access an

What was the first major company that J.P. Morgan became chairman of the board for in the late 1800s?A. Safeco B. United States Steel C. Carnegie Steel D. Ne

In 25 words or fewer, describe one primary and one secondary source useful for studying the causes of a war.

Why is the monopolistic competitor's demand curve more elastic than a pure monopolist's, but less elastic than a pure competitor's?

Which of these tables represents a function?[tex]\[ \begin{array}{|c|c|c|c|c|c|c|c|} \hline x & y & x & y & x & y & x & y \\ \hline

Write a function called substring() to extract a portion of a character string. The function should be called as follows: substring(source, start, count, result

ayuda, necesito sacar x de: -x+y=-3 es metodo de eliminación (reducción)

akiran007 akiran007 · Answer 1 · 2021-04-07T00:37:37-04:00

Answer:

The inventory has been reportedly increased and it should be checked.

Inventory management should be further examined.

Explanation:

Current Ratio = Current Assets/ Current liabilities

An increase in the current ratio means that there is an increase in the current assets or decrease in the current liabilities.

Acid test Ratio= Current Assets - Inventory / Current liabilities

If the acid test ratio is decreased it means that there is an increase in current liabilities or the current assets have decreased.

If we carefully look at the two formulas we find that inventory has increased and deduction of inventory from current assets reduces the amount of current assets and increases the current liabilities giving a bigger acid test ratio.

The inventory has been reportedly increased and it should be checked.

Inventory management should be further examined.

If a company's current ratio increases from 1.2 to 1.4 from one year to the next, and its acid test ratio decreases from 0.20 to 0.15 over the same time period, the most likely explanation is that:

Sagot :

Other Questions