In accounting, what is the equation

Q: how do I calculate the quick ratio in a balance sheet?

A: Quick ratio is a liquidity ratio which is used to analyse the ability of a company to pay their…

Q: How do you make a horizontal analysis on an income statement and balance sheet?

A: Horizontal analysis of financial statements: In horizontal analysis of financial statement, the…

Q: What's the difference between the acid-test ratio and current ratio?

A: The ratio analysis helps to analyse the financial statements of the business.

Q: Calculate the following ratios a. Liquid ratio.

A: Liquid ratio :         The ratio which is calculated for ascertaining or determining the liquidity…

Q: Which one of the following is not a type of measure used in the Balance scorecard?

A: The business organizations has employees in their various departments and on different level…

Q: what significance is it when a balance sheet analyzed horizontally is consistent with the data…

A: Balance sheet :— Balance sheet is the Summary of Financial Position of the Company. Balance sheet…

Q: What are the different sources of financial ratio information?

A: Financial ratios show the financial condition of the company. Following are types of financial…

Q: Define the term financial ratio.

A: Financial ratio: The financial ratio is used to determine the performance of the business by…

Q: How do you calculate for the ratios under the value portion in the table above? (blank spaces)

A: Profitability ratios are very important in the judgement and investment decision making about the…

Q: Briefly describe how mean-per-unit estimation, ratio estimation, and difference estimation areused…

A: Classical Variable Sampling: Classical variable sampling uses each individual item in the…

Q: 2020 2019 Notes RO *000 RO '000 ASSETS Non-current assets Property, plant and equipment Other…

A: Current ratio: It is a liquidity ratio that defines a company's ability to pay its current…

Q: The Jirapar CO. Transactions Date Accounting Transaction Thai Baht Supak invested property in…

A: Current  ratio= Current Assets/Current Liabilities   Let's prepare ledger Which Effect Current…

Q: Interpret the balance sheet using the current ratio and anunderstanding of related concepts.

A: Accounting ratio:   It is a number expressed in terms of another to establish relationship among…

Q: How does accounting rate of return (ARR) differ from the internal rate ofreturn (IRR)?

A: Introduction: Capital budgeting is an investment criterion or decision making mechanism for…

Q: Choose a financial ratio, describe what financial statement each variable in the ratio comes from,…

A: A financial ratio is a quantitative measure used to analyze and assess various aspects of a…

Q: What does a current ratio show?

A: Ratios are the measures which are determined by the entity in order to analyze the position of the…

Q: When should an average amount be used for the numerator or denominator? When the denominator is a…

A: The average amount is used for maintaining the nearest accuracy of the financial ratio. It helps the…

Q: Explain the meaning of the Accounting Period Assumption. Why the Accounting Period Assumption is…

A: Accounting Principles:   The term "accounting principles" refers to the standards, guidelines or…

Q: What is the meaning of each financial ratio?

A: Introduction: A financial ratio is a statistic that is frequently provided by two numbers acquired…

Q: Which of the following formulas is correct when describing the relationship between income (1),…

A: Present Value = (Future cash Flows/Rate)   Hence, Value is computed as discounting the cash flows…

Q: What does the purpose of compare financial statement?

A: comparing of financial statement refers to the act of comparing the current year's performance with…

Q: What is the connection between the income and balance sheets?

A: Introduction: Income statement: An income statement is a financial statement prepared by a company…

Q: What is meant by the current ratio?

A: The current ratio is liquidity which measures the ability of the enterprise to pay its short-term…

Q: Why is current ratio used?

A: Current ratio is the measure of liquidity position of the company. It shows the ability of the…

Q: The adjusted trial balance columns of the worksheet for LingLing Corporation are as follows:…

A: As requested to provide the solution for Income statement , Statement of Financial position we are…