Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. the quick ratio is measured by (cash + receivables

The Quick ratio is measured by (Cash + Receivables) / Current liabilities. Assume this ratio...

70.2K

Verified Solution

Question

Accounting

The Quick ratio is measured by (Cash + Receivables) / Current liabilities.

Assume this ratio is currently 80% (or 0.8:1) and that the cash balance remains positive at all times.

State the effect the following event occurring on the reporting date would have on this ratio.

EVENT: A payment to buy back a portion of shares from investors

would the ratio increase, decrease or no change?

answer asap pls

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

How to adaptation (response of rods and cones to changing light conditions) to a equivalent function...

Physics
Q

In the table which features are found in nearly all eukarya 1 2 3 4...

Biology
Q

In the figure as shown a straight wire carries a constant current The direction of...

Physics
Q

figure to the right to a identify the triangle as scal h isosceles o qu...

Basic Math
Q

The volume of a box is modeled by the function V(h)=4h - 24h + 35h,...

Basic Math
Q

Divide and simplify.18a7b-545a b-3OC. The Power RuleOD. Raising a Product to a PowerThe Quotient Rule...

Algebra
Q

Canine Supply Company est preparando un presupuesto de efectivo para diciembre y requiere un saldo...

Accounting
Q

Required information The general ledger of Zips Storage at January 1, 2021, includes...

Accounting
Q

1. An entity reported the following shareholders' equity at the beginning of the current year:...

Accounting
Q

KDW Restructuring & Liquidation v. Greenfield United States District Court, S.D. New York. 874 F.Supp.2d...

Accounting
Q

Ivanhoe Corporation purchased 440 shares of Sherman Inc. common stock as an available-for-sale investment for...

Accounting
Q

On March 25, Parscale Company purchases the rights to a mineral interest for $9,883,000. At...

Accounting