Acid Test Ratio Prepaid Expenses

Whole Numbers; How To Dissect And Solve Word Problems
Prepaid expenses 15,000 e. Long-term liabilities: f. Total current assets $61,000 f. Mortgage note payable 58,000 g. Plant and equipment: g. Total liabilities $150,000 h 2 to 1 Acid test (quick ratio) ... Read Document

Cash And Cash Equivalents - Wikipedia, The Free Encyclopedia
Cash and cash equivalents are the most liquid assets found within the asset portion of a company's balance sheet. Cash equivalents are assets that are readily convertible into cash, such as money market holdings, short-term government bonds or Treasury bills, marketable securities and commercial ... Read Article

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 ... Read Content

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 ... Access Doc

Hint For Quick Ratio - Investing For Beginners
It consists of current assets minus inventory, prepaid expenses, and other assets that aren't immediately liquid. Back to the $32,000 Acid Test Ratio; Improving Financial Planning - Start Your Own Consulting Business; Joshua Kennon Investing for Beginners Guide. ... Read Article

05. Financial Concepts: Ratio Analysis Uses Of Ratios. Of
4 Quick Assets Current Assets less ( Stock + prepaid expenses) 5 Quick 2.2 Acid Test Ratio: This ratio is also concerned with short‐term liquidity. In ... Retrieve Content

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 ... Get 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, ... Get Doc

Financial Statement Analysis - Welcome To The University Of ...
Prepaid Expenses. Total Current Assets Total Current Liabilities. Plant & Equipment Long-Term Debt (Accumulated Depr.) Common Stock. (or Acid Test) Ratio. This ratio recognizes that some current assets are more liquid than others. ... Access Doc

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. ... Fetch Doc

MANAGEMENT ACCOUNTING - Notes - Home
Acid-test ratio = 1.5. Working Capital = Rs. 1,62,000. Find out: Current Assets. Current Liabilities (c) Liquid Assets. 2.Given: 1,00,000 Current liabilities 2,00,000 Cash & bank 45,000 Prepaid expenses 5,000 11,50,000 11,50,000 Calculate: Debt Equity Ratio. Funded Debt to Total Capitalisation. ... Access Document

PROBLEM SET A - The McGraw-Hill Companies
Millie Corporation began the month of August with $400,000 of current assets, a current ratio of 3:1, and an acid-test ratio of 1.5:1. Prepaid expenses 3,000 Common stock, $5 par value 50,000. Plant assets, net 125,000 Retained earnings 104,200. ... Access Full Source

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 ... Get Doc

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, ... Retrieve Full Source

Exercise 17-1 (15 Minutes) - Del Mar College :: Home
Acid-test ratio (a) ÷ (b).. 0.94 to 1 1.22 to 1 d. Sales on account (a Prepaid Expenses.. 3,000decrease X Accounts Payable .. 40,000decrease X Accrued Liabilities.. 9,000increase X Deferred Income Taxes.. 15,000increase X ... Fetch Full Source

(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. ... Fetch 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. ... Return Document

User:Arael2/wikislice-economics - Wikipedia, The Free ...
- accrual for pension plan - accrual principle - accruals and deferrals - accrued expense - accumulated depreciation - acid test ratio event - power of attorney - power of decision - pre-consolidation adjustment - predetermined cost - preliminary expenses - prepaid expenses ... Read Article

ACCOUNTING RATIOS - OoCities - Geocities Archive / Geocities ...
Meaning: Quick ratio is also known as acid test or liquid ratio, which establishes a relationship between quick assets and current liabilities excluding bank overdraft. Quick assets = Current assets less closing stock and prepaid expenses. ... Fetch Doc

Reporting And Analyzing Merchandising Activities
Accounts Income Statement Formats Single-Step Income Statement Multiple-Step Income Statement Merchandising Cash Flows Acid-Test Ratio Method Perpetual Inventory Method Perpetual Inventory Method Additional Merchandising Issues Adjusting Entries Prepaid Expenses ... Document 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 ... Fetch Full Source

1.0 Ratio Analysis - ::spandane::
2.2 Acid Test Ratio Quick Assets / Quick liabilities. Sr. No. Ratios Formula / Interpretation 3.0 Profitability Ratios ( Stock + prepaid expenses) 5 Quick Liabilities. Current liabilities less Bank overdraft 6 Gross Profit Sales less material cost. ... Retrieve Here

CR = Current Assets/Current Liabilities Acid-Test Ratio Acid-Test Ratio: A more stringent measure than the CR as inventories and prepaid expenses are excluded Accounts Receivable Turnover This ratio shows the number of times the average accounts receivable have been collected. ... Fetch Document