100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Previously searched by you
Previously searched by you
logo
Ratios Question and answers 100% correct 2024/2025 CA$20.11   Add to cart
Quickly navigate to
Preview
  2.  
  3. APSC 221
  4.  
  5. APSC 221

Exam (elaborations)

Ratios Question and answers 100% correct 2024/2025
 4 views  0 purchase
  • Course
  • APSC 221
  • Institution
  • APSC 221

Ratios Question and answers 100% correct 2024/2025 Ratios- APSC 221 what does current mean - correct answer stuff that can be flipped easily for cash ( not cars, land, buildings) what do assets include that quick assets don't - correct answer inventories current ratio - correct answe...

[Show more]

Preview 1 out of 3  pages

Document information

  • October 6, 2024
  • 3
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers

Subjects

  • ratios
  • ratios question and answers 100 correct

Written for

  • APSC 221
  • APSC 221

Seller

avatar-seller
Carzola98

Reviews received

Content preview

Ratios- APSC 221
what does current mean - correct answer ✔stuff that can be flipped easily for
cash ( not cars, land, buildings)


what do assets include that quick assets don't - correct answer ✔inventories


current ratio - correct answer ✔current assets/ current liabilities
- should be around 2 for normal businesses
- lower than 2 but above one is normal for new ventures
- not good lower than this because current liabilites are likely not to be met
- if always above industry norm, the company likely has too much inventory in
stock that could have remained as cash to be invested and suggests that the
company is uncertain about sale projections
- just because you have a lot of assets, this could include inventories which is
hard to liquidate
- high ratio could also mean that they are not selling
- Should be high for panda parking if they have a lot of people willing to give
up parking spots because they have access to several different parking spots
and therefore this is their 'inventory / assets'


acid test ratio - correct answer ✔quick assets / current liabilites
- the ease of paying off liabilities without liquidation
- ratio less than 1 means the company has troubles paying short-term
liabilities
- bad if it is too high because they should be investing this money instead
- should be around 1

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller Carzola98. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for CA$20.11. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

75759 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 14 years now

Start selling
CA$20.11
  • (0)
  Add to cart