What are lines of credit? From the viewpoint of a short-term creditor, why do lines of credit increase a company’s liquid-ity? How are the unused portions of these lines presented in financial statements?

Q: What are some factors to consider in evaluating a company's ability to make payments on outstanding…

A: the factors list are net income:- the company will earn profit over its sales and make its…

Q: increasing the company's debts on Return on Assets (ROA) and Return on Equity (ROE

A: Debt is the liability incurred by the company by borrowing for its financial needs.

Q: 4 . Both accounts payable and deferred revenue are classifi ed as current liabilities. Discuss the…

A: Revenue: Revenue can be defined as income earned by any firm or an individual from the performance…

Q: debt service ratio measures? A. Profitability of the business B. The impact of debt funding to…

A: Debt service ratio means ratio of operating income available for debt service payments like…

Q: The relationship between current assets and current liabilities is   a. useful in determining…

A: The answer is as fallows

Q: What are bad debts?

A: Hi Student Since there are multiple questions, we will answer only first question. If you want…

Q: Which of the following statement is correct? Select one: a. Return on assets is the ratio of net…

A: The ratio is the measure of a relationship between two figures. In accounting, ratio analysis is…

Q: what is a balance sheet?  what is the function of the balance sheet in forecast the company's…

A: The balance sheet is the financial statement that shows the asset and liabilities of the company. It…

Q: Which of the following items will not be shown in the balance sheet of ahotel

A: Balance sheet is an orderly arrangement of assets and liabilities of a  business entity on a…

Q: Which of the following groups of accounts increase with a credit? a.common stock, revenues,…

A: For recording any transaction in accounting, there must be two aspects, debit and credit. A credit…

Q: On a company's financial statements, do you have to list/note if an asset is being used as…

A: Disclosures are additional information which are meaningful and important for the stakeholders to…

Q: Total Asset P 57,7 Liabilities and Capital Accounts Payable P 3,200 Notes Payable 30,350 Total…

A: The equity comprises of capital and retained earnings of the business.

Q: For the accounting period in which a short-term loan is paid off, which of the following correctly…

A: A short-term loan refers to an obligation of an entity that is going to be settled by the outflow of…

Q: Which one of the following is an advantage of the factoring of debtor accounts? Select one: a. The…

A: Debtor account factoring is a financial transaction in which a company sells its accounts…

Q: How is the valuation of cuIrent assets affected if the company follows IFRS? OValuation is based on…

A: SOLUTION- HISTORICAL COST  IS THE ORIGINAL OF AN ASSET , AS RECORDED IN AN ENTITY'S ACCOUNTING…

Q: Which of the following normally has a net credit balance? A. Asset accounts such as cash, accounts…

A: Credit Balance :— It means Credit is greater than debit. It is listed in credit side of trial…

Q: What is the purpose of long-term liabilities in financial accounting, and how do they affect a…

A: Long-term liabilities are obligations that are due beyond one year from the balance sheet date. The…

Q: What is total assets on this company's balance sheet?         What is total current liabilities…

A: Let's tackle each question one by one.Total Assets on the Company's Balance SheetTotal Assets are…

Q: Which of the following ratios is used by the company to determine its ability to pay currently…

A: A business organisation is treated as short term solvent if it is in a position to pay currently…

Q: Which of the following increase when business takes a loan from a bank? O a. Sales O b. Equity O c.…

A: The balance sheet of business consists of assets and liabilities.

Q: Which of the following should show a profit in order for a financial institution to give a the…

A: When a financial institution has to provide a loan to the business, then it needs the financial…

Q: liabilities not be reported on the balance sheet?

A: Contingent liabilities are liabilities, the question of settlement of them arise only on happening…

Q: 1) What would be the gross profit margin and net profit margin? 2) what is the relevance of…

A: The gross profit margin estimates the financial stability of the company.it is the balance left…

Q: What two purposes do firms achieve by estimating future uncollectible accounts?

A: What two purposes do firms achieve by estimating future uncollectible accounts?

Conversion Cycle

Conversion cycle is also known as cash cycle or net operating cycle. Conversion cycle refers to how much time a company takes to turn its investments which is done from stock or any other financial resources into cash flows from sales.