Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. each of the following would generally be considere

Each of the following would generally be considered a favorable indicator of an enterprises financial...

80.2K

Verified Solution

Question

Accounting

Each of the following would generally be considered a favorable indicator of an enterprises financial condition. There are circumstances where even though on the surface the ratio looks good, it may actually represents an unfavorable development. For each case give an example of where the event may actually be unfavorable.

a. A current ratio is above 4.0 which is substantially higher than other firms in that same companies industry

b. The accounts receivable collection period is significantly lower than for several recent periods

c. A rapidly rising inventory turnover ratio

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

1) Describe the main adverse effects of H1 an H2 receptor antagonists. 2) Describe the main contraindications...

Medical Sciences
Q

The organisms seen here, whose major energy source is from hydrothermal vents, are examples ofa)...

Biology
Q

Read the list of verbs foretold overtook will inflict will petition A writer would most...

Basic Math
Q

Perform the indicated operations with expressions involving radicals and then simplify x 5 x 5

Basic Math
Q

Evaluate 10

Statistics
Q

C and D are mutually exclusive events. Find P(C or D).P(C) = 3/7, P(D) =...

Algebra
Q

Find an equation of the line L 10 8 61 40 Q

Algebra
Q

Maple Company provides the following information about its product: What is...

Accounting
Q

\table[[Monthly Expense:,PROJECTED,ACTUAL],[Category,Budget Amount,Amount Spent],[HOME EXPENSES],[Mortgage or Rent],[HOA Fees],[Homeowner's or Rental Insurance],[\table[[Property Taxes]]],[Home Repairs/Home Maintenance],[\table[[Home Improvements]]],[Household...

Accounting
Q

Write an Essay on why we need Accounting Regulation and in your essay please explain...

Accounting
Q

n the cost reconciliation report under the weighted-average method, the "Costs to be accounted for"...

Accounting
Q

Tristan Narvaja, S.A. (B).Tristan Narvaja, S.A., is the Uruguayan subsidiary of a U.S. manufacturing company....

Accounting