Prepaid Expenses Acid Test Ratio

Solutions Guide: This Is Meant As A Solutions Guide
2011 2010 Sales $750,000 $600,000 Cost of goods sold 465,000 390,000 Selling expenses 120,000 72,000 Administrative 1,788 684 Merchandise inventory 956 997 Prepaid expenses 78 61 Other current Current ratio :1 Acid-test ratio :1 Receivables turnover times ... View This Document

Additional Aspects Of Financial Reporting And Financial Analysis
Ratio Analysis Liquidity Ratios Cash Short-term investments Accounts receivable Inventory Prepaid expenses/supplies * Appendix: Ratio Analysis The acid-test ratio is a more severe test of a company’s short-term debt-paying abilities. ... Retrieve Here

Financial Statement Analysis Ratio Analysis
Prepaid Expenses O.S.Incomes. IDEAL RATIO = 2:1 II. Quick ratio or Acid Test ratio = Quick Asset Quick liability = Current Assets – Inventories- Prepaid expenses . Current Liabilities – Bank O.D. – Income Received in Advance  Ratio of ... Doc Viewer

Chapter 6
* The acid-test ratio is similar to the current ratio but is based on a more conservative measure of current assets available to pay current liabilities. Because it eliminates current assets such as inventories and prepaid expenses that are less readily convertible into cash, ... Return Doc

Analyzing A Balance Sheet - Investing For Beginners
Prepaid expenses on the balance sheet represent a current asset because the company still has the right to receive the product or service for which it has paid. Current Liabilities. The current ratio is a test of a company's liquidity. ... Read Article

Exercises: Set B EXERCISES: SET B - Wiley: Home
Prepaid expenses 55 53 Other current assets 760 595 Total current assets $2,874 $2,572 Total current liabilities $1,623 $1,341 Perform current and acid-test ratio analysis. (SO 5) Compute selected ratios. (SO 5) For the year, net sales were $7,723, and cost of goods sold was $4,888 (in millions). ... Access Document

RATIO ANALYSIS - Home - The ICSI
Acid Test Ratio / quick ratio. Absolute liquid ration / cash ratio. 1. excluding provisions for bad debts and doubtful debtors, bills receivables and prepaid expenses. Current liabilities includes sundry creditors, bills payable, short- term loans, income-tax liability, ... Access Full Source

Financial Ratio Analysis - FIRST SEMESTER NOTES - AMITY ...
6.Prepaid Expenses 6.Provision for Tax 7.Advance Liquidity Ratio or Liquid Ratio or Quick Ratio or Acid Test Ratio: Liquidity Ratio is a relationship of liquid assets with current liabilities and is computed to assess the short- term liquidity ... Access Doc

MULTIPLE CHOICE QUESTIONS - Portland Community College
Prepaid Expenses and Accounts Payable decreased $4,000 and $8,000, respectively. There was also a loss on the sale of equipment of $6,000. How much cash was provided by operating activities? a. $352,000. If a company has an acid-test ratio of 1.2:1, ... Access This Document

(ii) Quick ratio Quick ratio is also known as Acid test or Liquid ratio. It is another ratio of calculating this ratio, stock and prepaid expenses are not taken into account as these may not be converted into cash in a very short period. ... Doc Viewer

ILLUSTRATION 13-1 CLASSIFICATION OF SHORT-TERM OBLIGATIONS ...
Acid-test ratio = Example (in millions of dollars): Inventories 14.8 Prepaid expenses 6.2 Current ratio = = = 3.0 times Acid-test ratio = = = 1.42 times Current assets Current liabilities marketable net cash + securities + receivables current liabilities $5.5 + 3 ... Get Content Here

Exercise 17-1 (15 Minutes) - Del Mar College :: Home
Prepaid expenses.. 8,000 Total current assets.. 900,000 Current liabilities: Accounts payable.. 200,000 Accrued Acid-test ratio (a) ÷ (b).. 0.94 to 1 1.22 to 1 d. Sales on account ... Fetch Here

Financial Ratio Analysis - Liquidity Ratios - Understanding ...
A firm's liquidity ratios show its ability to meet its short term debt obligations. The current ratio is the broadest measure of liquidity. ... Read Article

1.0 Ratio Analysis - ::spandane::
& advances + Prepaid expenses 3 Current liabilities Creditors + BP + O/S expenses + IT payable + Dividend payable + Bank overdraft ( not if permanent) 2.2 Acid Test Ratio: This ratio is also concerned with short-term liquidity. ... Return Document

Weygandt Accounting Principles 10e Exercise SetB Ch18
Prepaid expenses 93 78 Other current assets 210 181 Total current assets $3,217 $3,361 Total current liabilities $1,601 $1,635 Perform current and acid-test ratio analysis. (SO 5) Compute selected ratios. (SO 5) For the year, net sales were $8,272, and cost of goods sold was $5,417 (in millions). ... Content Retrieval

PART A - Chabot College
$988,000, inventory is $87,000, and prepaid expenses are $200,000. What is the company’s acid-test ratio? a. 2.04:1 b. 3.16:1 c. 1.45:1 d. 0.69:1 50. To accurately evaluate a firm’s financial ratios, you should compare the ratios to: a ... Read Document

ACID-TEST (QUICK) RATIO - University Of Illinois At Chicago - UIC
The acid-test ratio is very similar to the prepaid expenses from the numerator. Inventory and prepaid expenses are current assets but are not considered to be highly liquid. The (acid-test / current) ratio will always report a higher value. ... Retrieve Here

Hawaii - Wikipedia, The Free Encyclopedia
Hawaii Prepaid Health Care Act. Hawaii's health care system Hawaiians require hospital treatment less frequently than the rest of the United States, while total health care expenses and high school test scores in Hawaii are below national averages on tests mandated under the No ... Read Article

Ratios For Fnancial Analysis
Quick_Ratio_or__Acid_test_Ratio Return_On_Assets Denominator Ratio Significance Current Assets Current Liabilities Sundry Creditors (For Goods) +Outstanding Expenses +Short Term Loans & advances +Bank Overdraft/ Cash Credit +Provisio for Less Prepaid Expenses Current Liabilities Less : Bank Overdraft ... Get Doc

The quick ratio - aka the quick assets ratio or the acid-test ratio - is a liquidity prepaid expenses and deferred income taxes do not pass the test of truly liquid assets. Thus, using the shortcut approach artificially overstates ... Read Document

Chapter 4: RATION ANALYSIS - Purdue University
Quick Ratio = Acid Test Ratio Ex. Year 03 Current Assets = $73,370 = 1.17:1 Current Liabilities $62,000 Year 04 Prepaid Expenses Current Liabilities RECEIVABLE RATIOS -To correctly calculate receivable ratios, at least two successive periods of data is ... Document Retrieval

CHAPTER 18
Prepaid expenses while the acid-test ratio excludes these. The acid-test ratio provides additional information about short-term liquidity and is an important complement to the current ratio. 10. Donte Company does not necessarily have a problem. ... View Doc

Current Liabilities On The Balance Sheet - Investing For ...
The Current Ratio; Prepaid Expenses and Other Current Assets; Joshua Kennon Investing for Beginners Guide. Sign up for My Newsletter; Headlines; Forum; Related Searches short term loans current liabilities financial weakness holiday rush liability accounts current liability. ... Read Article