Answered: Current assets LESS current liabilities…

Business

Finance

Current assets LESS current liabilities is the * a. Current Ratio b. Net Worth Ratio c. Working Capital

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter24: Analysis Of Financial Statements

Section: Chapter Questions

Problem 2MC

See similar textbooks

Related questions

Q: Calcuate the following ratios 1. Profitability 2. Liquidity 3. Gearing 4. Investment

A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: It indicates the proportion of debt in relation to resources provided by the owners, a. Debt…

A: Lets understand the basics. Debt to equity ratio is a ratio which compares how much proportionate…

Q: Return on Capiatal employed = O a. Return on Total Assets O b. Return on Equity Oc. Return on…

A: Solution: Return on capital employed = EBIT/ Capital employed Capital employed = Total assets -…

Q: Calculate the Efficiency ratio which includes the sales to total assets ratio, operating return on…

A: The efficiency ratio is one of the most important measure to understand how well the company has…

Q: Return on equity b. Total assets turnover c. Return on assets

A: “Since you have posted a question with multiple sub-parts, we will solve the first three subparts…

Q: Balance Sheet December 31, 2020 LIABILITIES AND SHAREHOLDER'S ASSETS EQUITY Current assets Current…

A: Ratio analysis is the analysis made on the basis of balance sheet and income statements of the…

Q: Total debt-to-assets ratio, debt-to-equity ratio and Long-term debt-to-capital ratio are examples of…

A: Financial ratios are based on the relationship between two financial line items. For instance, the…

Q: Calculate the following ratios: 1. Return on Capital Employed (ROCE) 2. Current Ratio 3. Gearing…

A: 1.Return on Capital Employed (ROCE) Return on capital employed is calculated by dividing net…

Q: labili sets/Net Sale

A: The correct answer is D. Net sales / Average Total Assets

Q: Which of the following is one measure of liquidity? a. Quick ratio b. Profit margin c.…

A: Introduction: Liquidity: Liquidity means which can be easily converted in to the cash with in short…

Q: 9.Working capital is calculated as: Select one: Current assets plus current liabilities…

A: Introduction Working capital is an important measure of a business's financial health and liquidity.…

Q: You are hired as a CFO of the company ABC. ABC has just been through an IPO process. The CEO is…

A: Part c, For row 3. Given: Value of debt “D” = 400 Value of Equity “E” =800 Total Value “V” = 1200…

Q: Which is a measure of the profitability of the core operation? 1.Gross profit ratio 2.interest cover…

A: Ratio analysis is the measurement of a company's profitability, solvency, and liquidity by taking…

Q: Capitalizing a cost involves increasing what type of account?a. Liabilityb. Expensec. Stockholders’…

A: An asset is something which contains future economic value or future benefit. A liability is…

Q: Which of the following is NOT a profitability ratio? Select one: a. Return on Equity b. Net Profit…

Q: Quick assets divided by current liabilities is the: Select one: a.Current ratio. b.Working capital…

A: Quick assets are the highly liquid assets that include all the current assets except inventory and…

Q: Return on assets

A: Return on assets is computed as net income upon total assets of the company.

Q: Which one of the following formulas is correct? O i) Profit margin = EBIT / Sales O ii) ROA = ROE /…

A: ROA = ROE / Equity Multiplier ROA = Net Income / Total Assets ROE = Net Income / Shareholders'…

Q: inancial Statement Analysis Compute for Profitability Ratio with Substantial Analysis: a. Gross…

A: Accounting ratios are those ratios which compare the line items of the balance sheet of company in…

Q: n equity/capital O D.

A: To find the correct option as,

Q: Answer the following question a. Return on equity b. Total assets turnover c. Return on assets d.…

A: Return on Equity: It represents a measure of profitability for the firm expressed in percentage…

Q: Find 1. Total Debt Ratio 2. Debt to Equity Ratio 3. Net profit Margin

A: The financial ratios are used to find out the financial health of the company.

Q: How to calculate working capital, current assests, current liabilities, quick assets, quick ratio…

Q: Questions: 1. Working capital 2. Current ratio 3. Acid-test ratio

A: Lets understand things asked in the question. Working capital is a capital of the business which…

Q: 2. Current ratio x 3. Debt-to-equity ratio x

A: Ratio analysis is a technique used to assess a company's financial performance by comparing…

Q: A. Which of the following is most closely associated with the cost of using assets? a. Asset…

A: A. The ratio of total sales or revenue to average assets is known as asset turnover. The asset…

Q: ______ ratios are used to measure the speed in which various assets are converted into sales or cash

A: A firm can convert its assets into cash. Those assets that can be converted into cash within a short…

Q: a. What is debt management ratio? b. What is profitability ratio?

A: Since, you have asked multiple question, we will solve one question for you. if you want any…

Q: uestion: What is the formula for calculating the current ratio? a. Current Assets / Current…

A: The ratio analysis helps to analyze the financial statements of the business. The liquidity ratios…

Q: Current assets DIVIDED BY current liabilities is the Current Ratio Net Worth Ratio Working Capital

A: The question is related to the short term solvency ratio. The short term solvency ratio indicates…

Q: times interest earned k. cash coverage ratio l. current ratio and quick ratio

A: Times interest earned is a ratio which tells how much earnings does the company has so that it is…

Q: Which ratio measures the ability to pay current liabilities with current assets?a. Debt ratiob.…

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

Q: g. operating profit margin h. long -term debt ratio i. total debt ratio

A: Income statement is a statement which records the revenue and expenses of an undertaking for a…

Q: a. Return on equity b. Total assets turnover c. Return on assets d. Current ratio e. Receivables…

A: a. Return on equity = Net Income / Shareholders' Equityb. Total assets turnover = Sales / Total…

Q: In a DuPont analysis, what are the components of return on assets?a. Net Profit Margin Ratio and…

A: Formula of Return on assets in Du Pont analysis is as follows:Return on assets=Net profit…

Q: For the year ended 31 Dec. 2018 £000 For the year ended 31 Dec. 2019 £000 £000 £000 6,000 Sales…

A: (i) Return on capital employed = EBITTotal assets-Total current liabilities For 2018: ROCE =…

Question

5. Current assets LESS current liabilities is the *

a. Current Ratio

b. Net Worth Ratio

c. Working Capital

d. Quick Assets

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

4. Current assets DIVIDED BY current liabilities is the a. Current Ratio b. Net Worth Ratio c. Working Capital d. Quick Assets
Quick assets divided by current liabilities is the: Select one: a.Current ratio. b.Working capital ratio. c.Quick asset turnover ratio. d.Acid-test ratio.
Question: What is the formula for calculating the current ratio? a. Current Assets / Current Liabilitiesb. Current Liabilities / Current Assetsc. Total Assets / Total Liabilitiesd. Total Liabilities / Total Assets
Which of the following is NOT a profitability ratio? Select one:a. Return on Equityb. Net Profit Marginc. Return on Assetsd. Average Collection Period
Equity equals to: O A. Total liabilities plus current assets O B. Current assets plus non-current assets less total liabilities. O C. Capital plus drawings. O D. Total assets less total liabilities.
Using the following account balances, calculate: A. working capital B. current ratio
Which of the following ratios is most useful in evaluating liquidity? ed d out of g ion • A. Return on assets. O B. Debt to equity ratio. C. Return on equity/capital O D. Current ratio.
How to calculate working capital, current assests, current liabilities, quick assets, quick ratio and current ratio.
4 The current ratio is calculated as current liabilities divided by current assets. O a. FALSE put of O b. TRUE question
Current assets minus current Ilabilitles Is: Multiple Cholce Working capital. Financial leverage. Profit margin. Current ratio. Quick assets.
Which of the following is an appropriate computation for return on investment? a. Sales divided by total assets b. Net income divided by total assets c. Net income divided by sales d. Sales divided by stockholders' equity would b be the right answer?
Questions: 1. Times interest earned ratio 2. Debt to equity ratio