course hero considered alone, which one of the following would increase a company's current ratio

Which of these would increase a company's current ratio?

Increasing the accounts receivable will increase the current assets and increase the current ratio. An increase in the accounts payable will increase the current liabilities. Thus, the current ratio will decrease. An increase in net fixed assets will not change the current ratio.

Which of the following ratios measures how effectively a firm is managing its debts?

The receivables turnover ratio measures how efficiently a company can actively collect its debts and extend its credits. The ratio is calculated by dividing a company's net credit sales by its average accounts receivable.

Which of the following items is not included in current assets?

Other current assets is a default classification of "current asset" general ledger accounts. It does not include cash, marketable securities, accounts receivable, inventory, and prepaid expenses.

Which of the following shows the improvement in the company's financial standing holding other things constant?

Which of the following would indicate an IMPROVEMENT in a company's financial position, holding other things constant? e) The current and quick ratios both increase.

Which of the following ratios are used to measure a firm's performance and liquidity?

One of the liquidity ratios is the current ratio. The current ratio includes assets and liabilities that are paid within a year and the higher this ratio indicates higher the liquidity position of the company.

How do you increase efficiency ratio?

Reducing unit costs for specific products and processes. Managing unneeded capacity in operating areas and channels. Optimizing the cost of delivering quality service. Increasing the speed of completion internally and for customers.

What are 3 types of current assets?

Of the many types of Current Assets accounts, three are Cash and Cash Equivalents, Marketable Securities, and Prepaid Expenses.

Which of the following is the component of current assets Mcq?

The components of the current assets are cash and cash equivalents, receivable account, inventory and prepaid expenses.

Which of the following is an item of current assets Mcq?

Accounts receivable reflects the amount to be received from the debtors for the sales made. Since, such amounts for sales made are receivable in the short period, accounts receivable are classified as current assets. Was this answer helpful?

Which of the following strategies can be used to increase a company's return on assets?

Which of the following successful strategies will increase the return on assets, all else equal? Increase the profit margin (if company can increase profitability of firm, return on assets will increase.

Which of the following statements about the primary purpose of financial reporting is the most correct?

Question 1: Correct answer is A Explanation Option A The primary purpose of financial reporting is enable proper and informed decision-making by providing relevant information.

Which of the following would cause a corporation's inventory turnover ratio to increase?

If a firm increases its sales and cost of goods sold while holding its inventories constant, then, other things held constant, its inventory turnover ratio will increase.

Which of the following ratios measure how effectively a firm is managing its assets?

Total Assets Turnover Ratio - A firm's total sales divided by its total assets. It is a measure of how efficiently a firm uses its assets.

Which of the following ratios measures how effectively the company uses its assets?

There are four categories of ratios. Liquidity ratios measure your company's short-term ability to pay its maturing obligations. Activity ratios measure how effectively your company is using its assets. Profitability ratios measure the degree of success or failure of your company during a given period of time.

Which of the following ratio tells how effectively a firm is using its assets to generate sales revenue?

asset turnover ratioThe asset turnover ratio is a measurement that shows how efficiently a company is using its owned resources to generate revenue or sales. The ratio compares the company's gross revenue to the average total number of assets to reveal how many sales were generated from every dollar of company assets.

Which group of ratios measure how effectively the firm is using its assets?

The accounts receivables turnover ratio, also known as debtor's ratio, is an activity ratio that measures the efficiency with which the business is utilizing its assets. It measures how many times a business can turn its accounts receivables into cash.

What happens to inventory turnover ratio when sales increase?

a. If a firm increases its sales while holding its inventories constant, then, other things held constant, its inventory turnover ratio will decrease.

Which is riskier, C or A?

c. Company A is probably judged by investors to be riskier.

Does an increase in inventories have an effect on the current ratio?

c. An increase in inventories would have no effect on the current ratio.

Does a reduction in inventory turnover ratio increase ROE?

e. A reduction in the inventory turnover ratio will generally lead to an increase in the ROE.

How are inventory turnover and current ratio related?

The inventory turnover and current ratio are related. The combination of a high current ratio and a low inventory turnover ratio, relative to industry norms , suggests that the firm has an above-average inventory level and/or that part of the inventory is obsolete or damaged.

What is the difference between current ratio and inventory turnover?

The current ratio and inventory turnover ratios both help us measure the firm's liquidity. The current ratio measures the relationship of a firm's current assets to its current liabilities, while the inventory turnover ratio gives us an indication of how long it takes the firm to convert its inventory to cash.

What does a decline in inventory turnover ratio mean?

A decline in a firm's inventory turnover ratio suggests that it is managing its inventory more efficiently and also that its liquidity position is improving, i.e., it is becoming more liquid.

What is ratio analysis?

Ratio analysis involves financial statements in order to appraise a firm's financial position and strength.

What happens to an annuity when the number of periods per year increases?

All other things held constant, the present value of a given annual annuity decreases as the number of periods per year increases.

Does C. change its cash position?

C. does not alter its cash position.