Explain quick ratio

Q: How are the ratios useful?

A: Answer: Ratio analysis is allowing a comparison two firm’s annual financial statement using certain…

Q: Define the term Current ratio with example.

A: Ratio analysis: It is the financial analysis tool for measuring the profitability, liquidity,…

Q: advantages and disadvantages of using ratios

A: Accounting ratios are important metrics used to evaluate the financial position of a business…

Q: Define geometric-gradient-series?

A: When there is a change in the cash flows series whether it is positive or negative then the series…

Q: Briefly explain the usefulness of a sensitivity graph

A: A sensitivity graph depicts all the assumption results on the final outcome in the exercise of…

Q: Analyze the given vertical analysis and compute for the quick ratio

A: Quick ratio = (Current assets - Inventories - Prepaid expenses) / Current liabilities

Q: Define margin of safety ratio. Give an example.

A: Cost-Volume-Profit (CVP) Analysis: It is a method followed to analyze the relationship between the…

Q: Simple Rate of Return

A: Simple rate of return = Net operating income * 100/ Cost of investment

Q: Calculate Vertical and Horizontal Ratio Analysis?

A: Ratios refer to the measurement of the relation between two sums. In accounting, ratio analysis is…

Q: Define crossover rate

A: Crossover over rate helps the company to determine which investment proposal will be beneficial in…

Q: Discuss the advantages and limitations of Ratio Analysis.

A: Ratio analysis is the process of determining and interpreting numerical relationships based on…

Q: Define common size analysis

A: Financial statements are analyzed to determine the profit earning capacity of the business and also…

Q: Refer to the tables above. Marni's quick ratio is

A: Information Provided: Cash = $50,000 Accounts Receivable = $100,000 Inventory = $200,000 Accounts…

Q: Explain gaining ratio

A: Introduction:- Gaining ratio may be defined as Gaining ratio is a type of financial tool, which…

Q: Define efficiency ratios

A: Efficiency Ratios : These ratios are employed to evaluate the efficiency with which the firm manages…

Q: How can the quick ratio be determined with the given information?

A: Quick Ratio: Quick ratio is a liquidity ratio calculated for the purpose of evaluating the liquidity…

Q: Explain a linear cost function.

A: A function where the cost depends linearly upon the number of units produced is called a linear cost…

Q: List several potential problems with ratio analysis.

A: Ratio analysis is a correlation of details in an organization's financial reports. It is utilized to…

Q: What is the P/D ratio? How can it be improved?

A: P/D ratio is more accurate way for anticipating what is really required. P/D ratio compares the…

Q: solvency ratio

A: The solvency ratio is the ratio that tells about the company's ability to pay its liabilities or…

Q: Calculate the current ratio

A: The current ratio is the ratio of current assets to the current liabilities. It shows the ability of…

Q: Define current ratio.

A: Ratio analysis: The analysis of a company using the financial ratios and comparing its trends and…

Q: Compute current ratio

A: The current ratio is a financial ratio that measures whether or not a firm has enough resources to…

Q: Explain retention ratio

A: Retention Ratio represents the percentage of profits retained by a Company. The Retention ratio…

Q: ne ratio

A: In asset revaluation method assets and liabilites of the firms are revalued to their…

Q: Describe the Incremental B/C-Ratio Analysis?

A: Benefit cost analysis: Benefit cost analysis refers to analyzing the desirability of project where…

Q: what is quick ratio?

A: Ratio analysis: It refers to the quantitative technique of financial analysis that allows gaining an…

Q: Define estimates.

A: Estimates are future predictions of something. For example at the beginning of the year a business…

Q: Define GAP Analysis

A: Gap Analysis is done by the company to fill the gaps and improve the performance of the company.…

Q: Determine the current ratio

A: Current Ratio: It is a measure of liquidity and indicates the ability of a firm to pay the…

Q: Briefly explain what is meant by the term efficiency continuum.

A: At a given level of the stock market when the stock a company performs extremely well and on the…

Q: How is the Quick Ratio calculated?

A: Definition:   Quick ratio: The financial ratio which evaluates the ability of a company to pay off…

Q: compute for throughput time

A: Throughput time or the period is the time in days or in hours which are required by the company in…

Q: Explain arithmetic mean returns?

A: Arithmetic mean:It is a commonly used measure of  mean (or measure of average). Arithmetic mean is…

Q: Define each of the following terms: e. NPV profile; crossover rate

A: NPV PROFILE: NPV(Net present value) profile is described as the values of net present value and the…

Q: Define solvency ratios.

A: Solvency: Solvency is the capability of a company to pay the long-term liabilities which are due.…

Q: Formula for quick ratio?

A: Quick ratio is an important financial ratio used to evaluate the liquidity of the company

Q: Explain the process of Rate-of-Return Calculation with Excel?

A: Rate of return is the rate expressed in terms of percentage which an investor expects from the…

Q: what is the quick ratio,

A: The quick ratio( also know as acid test ratio) is an state that a company’s short-term liquidity…

Q: What is the difference between the current ratio and the quick ratio?

A: Ratio analysis is a method of measuring the financial position of the organization with different…

Q: Find the internal rate of return

A: Internal Rate of Return is the rate at which Present value of cash inflow is equal to present value…

Q: Define a nonlinear cost function.

A: Cost Function: Cost function represents the basic change that comes in the total cost due to the…

Q: Explain the term single rate method.

A:

Q: solvency ratios

A: Solvency ratio indicates the company's ability to pay off its debt obligation.