0
What else can I help you with?
Why did the current ratio go up and the quick ratio go down?
The current ratio may increase due to a rise in current assets, such as cash or inventory, relative to current liabilities, indicating improved liquidity. Conversely, the quick ratio could decrease if inventory levels rise significantly, as this ratio excludes inventory from current assets. This divergence suggests that while the company has more overall assets to cover its short-term obligations, its liquid assets (excluding inventory) may not be sufficient to meet immediate liabilities.
What is the quick ratio?
The quick (or acid-test) ratio equals current assets minus inventory divided by current liabilities. This ratio is used to evaluate liquidity and is often used in conjunction with the current ratio. The difference between the current ratio and the quick ratio tells you how much inventory may be tied up in current assets. Relatively large inventories are often a sign of short-term trouble.
How do we calculate?
V = I x R V = voltage, I = Current, R = Resistance or it can be calculate like this V = P / I V = Voltage, P = Electric Power, I = Current
What is the limitation common to both the current and the quick ratio?
Both the current and quick ratios primarily focus on a company's liquidity by assessing its ability to meet short-term obligations with current assets. However, a common limitation is that these ratios do not account for the timing of cash flows, meaning they may not accurately reflect a company's immediate cash position. Additionally, they can be distorted by inventory levels, especially in the case of the current ratio, which includes inventory as a current asset, despite it not always being easily convertible to cash.
Which of the following data is used to determine credit scores?
the legnth of stay at your current residence
How do you calculate current ratio and quick ratio?
by getting the difference between current assets and stock and then dividing the difference by current liabilities.
Under which of the following categories would Inventory appear?
current assets
How do you calculate Non cash Working Capital?
Inventory+AR+Prepaid expense-Current Liabilities
How do you calculate Non-cash Working Capital?
Inventory+AR+Prepaid expense-Current Liabilities
Is Closing Inventory is it a current asset?
is closing inventory a current or non current asset
What function would you use to calculate today's current date?
That depends, based on what information you want to calculate it.
What is the definition of human resource inventory?
Human Resources Inventory is an inventory of skills of human resources currently employed in the organization. It tells management what individual employees can do. The profile of the human resource inventory can provide information for identifying current or future threats to the organization's ability to perform .It is necessary for a firm to identify the current capability and skills of their employees
Does inventory goes into the cash flow statement?
Yes, changes in inventory do appear in the cash flow statement. Inventory is a current asset, and changes in inventory, such as purchases or sales, have an impact on cash flow from operating activities. An increase in inventory is subtracted from net income to calculate cash provided by operating activities, while a decrease in inventory is added back to net income.
Is ending inventory asset or liability?
asset Inventory is a current asset so when the required inventory is utilized the remaining inventory still remain as asset and not become liability. For example inventory of $100 purchase to use for production which is our current asset. when inventory of $90 utilized the remaining $10 is still our current asset while $90 become expense for production of units.
What is inventory personnel?
Inventory personnel is a comprehansive assesment of current human resources for future forecasting
The inventory method which results in the inventory value on the balance sheet that is closest to current cost is the?
FIFO
Can you calculate power by multiplying voltage and current?
Not enough information. Power = current x voltage. Since voltage can be anything, there is no way to calculate power. Time is irrelevant; though once you have the power, it can help you calculate energy (energy = power x time).
