Homework Answers
ANSWERS
13) option B is correct
the ability to pay the debts the debts of the company as they become due
Explanation : generally liquidity means ability of a company or a business to pay it's debts as they become due. Or simply converting assets into cash
14)option B is correct
The ability to increase retained earningso
Explanation : retained earning increases when company got more profits. If retained earnings of the company increases it indicates profitability
15) option C is correct
Losses from unprofitable operation of the business
Explanation : if you repay loan or debt it doesn't decreases the shareholders equity.
Equity is different from the outsiders debt.
16) option B is correct
$67500
Explanation : assets = liabilities+equity
Equity = assets - liabilities = $270,000 - $202,500 = $67500
Add Answer to:
13. Which of the following best describes liquidity? A. The ability to increase the value of...
The ability of a business to pay its debts as they come due and to earn...
The ability of a business to pay its debts as they come due and to earn a reasonable amount of income is referred to asa. solvency and leverageb. solvency and profitabilityc. solvency and liquidityd. solvency and equity
Which of the following factors pose a limit on the ability of commercial banks to increase...
Which of the following factors pose a limit on the ability of commercial banks to increase the quantity of money in circulation by extending new loans? Select one or more: a. the quantity of Central Bank reserves that they own b. the quantity of money that savers lent to them by opening deposits c. the behavior of households and firms, which reduce the quantity of money in circulation by repaying previous loans. d. the availability of profitable lending opportunities in...
ch14: 2. Other dividend policy issues Several factors affect a firm's ability to pay a dividend....
ch14: 2. Other dividend policy issues Several factors affect a firm's ability to pay a dividend. Three such factors are described in the table: profitability (an increase in net income), investment opportunities, and capital structure (an increase in the debt ratio). Use the table to indicate how a firm’s ability to pay a dividend is affected by the factors described.(Hint: Consider each factor in isolation, with everything else held the same.) a: Net income increases. The ability to pay dividends,...
What best describes the financial concept of debt serviceability? A. The ability to pay interest expense...
What best describes the financial concept of debt serviceability? A. The ability to pay interest expense during the year. B. The ability to pay long-term debt as it becomes due. C. The ability to sell inventory. D. The ability to satisfy short term obligations.
Which of the following is not a source of cash? A. Dividends received on investment. B....
Which of the following is not a source of cash? A. Dividends received on investment. B. Borrowing $5,000 on short-term note. C. Gain on sale of warehouse. D. All of these answer choices are sources of cash. Which of the following is not a use of cash? A. Purchasing supplies for cash B. Paying dividends to stockholders C. Buying inventory on account D. Repayment of bond payable Which of the following cash flows results from an operating activity? A. Repaying...
Which of the following best describes the relationship between revenue and retained earnings? Multiple Choice A....
Which of the following best describes the relationship between revenue and retained earnings? Multiple Choice A. Revenue represents a cash receipt; retained earnings is an element of stockholders' equity. B. Retained earnings is equal to assets minus expenses. C. Revenue represents the price of goods sold or services rendered; retained earnings represents cash available for paying dividends. D. Revenue increases net income, which in turn increases retained earnings. Which of the following is not a right of stockholders? Multiple Choice...
The following statements relate to debt ratios and the ability to pay debt – identify the...
The following statements relate to debt ratios and the ability to pay debt – identify the true statement: Select one: A. If I add cash, marketable securities, investments and retained earnings together as they are presented on the Balance sheet, I will get a sense of my company’s true cash position and its ability to pay down its debts. B. Decreasing my level of debt relative to equity will lead to an increase in my Return on Equity. C. A...
only the final answers plz 1. Which definition below best describes financial accounting? A. Process of...
only the final answers plz
1. Which definition below best describes financial accounting? A. Process of measuring income taxes owed to the government. B. System of maintaining communication with a company's customers and suppliers. C. Procedures designed to enhance the company's image to potential investors. D. Measuring business activities and communicating them to external parties. 2. Liabilities can be best described as: A. The amount of expenses over the past year. B. The amount expected to be distributed to stockholders....
Which of the following best describes the term "current assets"?
Which of the following best describes the term "current assets"? a. Assets expected to be converted into cash within one year or one operating cycle, whichever is longer. b. The amount of claim that the owners have in the business in the current year. c. The cumulative profits earned by a business less any dividends distributed in the current period. d. The amount of total profits earned by a business since it began operations plus all other resources.
5. 5. The current ratio measures: A) The ability of a company to quickly sell its...
5. 5. The current ratio measures: A) The ability of a company to quickly sell its inventory to customers. B) The amount of profits retained in the business. C) The ability of a company to quickly collect cash from customers. D) The ability of a company to pay its current obligations.
only the final answers plz
1. Which definition below best describes financial accounting? A. Process of measuring income taxes owed to the government. B. System of maintaining communication with a company's customers and suppliers. C. Procedures designed to enhance the company's image to potential investors. D. Measuring business activities and communicating them to external parties. 2. Liabilities can be best described as: A. The amount of expenses over the past year. B. The amount expected to be distributed to stockholders....
Most questions answered within 3 hours.
-
Where is the error in this code sequence?
String s1 = "Hello";
String s2 = "ello";...
asked 11 months ago -
Financial data for Joel de Paris, Inc., for last year
follow:
Joel de Paris, Inc.
Balance...
asked 11 months ago -
Consider this reaction:
Al2(SO4)3 (aq)+ BaCl3
(aq) Al2Cl6 (aq)- +
3BaSO4(s) . What is the...
asked 11 months ago -
Suppose that Savneet is considering increasing her
recent random sample from 20 car rentals to 40...
asked 11 months ago -
Trucks arrive at an unloading terminal at an average rate of 120
per hour.
Trucks arrive...
asked 11 months ago -
Why are methanol and ethanol completely soluble in water while
octanol is not very little soluble....
asked 11 months ago -
A facilities manager at a university reads in a research report
that the mean amount of...
asked 11 months ago -
When the CuSO4 is rehydrated by adding water to the anhydrous
compound, is this an endothermic...
asked 11 months ago -
A ray of sunlight is passing from diamond into crown glass; the
angle of incidence is...
asked 11 months ago -
A block of mass 0.249 kg is placed on top of a light, vertical
spring of...
asked 11 months ago -
how do the kidneys compensate in the presences of acidosis
a) trigger hyperventilate
b) reserve acid...
asked 11 months ago -
Question 501 pts
The rental rate of capital to the firm increases. Which of the
following...
asked 11 months ago