Identify the statement below that describes what the Days' sales uncollected ratio assesses. O It measures how quickly a company can convert its accounts receivables into cash. O It assesses the company's ability to pay its debts. O It is a useful in evaluating the liquidity of inventory. O It measures how profitable a company is when it sells it products.

Q: What does a high ratio in Creditors Turnover Ratio indicate? a. Company is delaying the payment to…

A: Creditors Turnover Ratio measures how fast a company is paying off its creditors.

Q: Which of the following statements is true? L. All other things the same, when a company increases…

A: Statement i:The anticipated increase in the inventory does not have any direct impact on the…

Q: The Inventory Turnover ratio measures: 1.The ability of a company to report profits in the current…

A: Solution:- The Inventory Turnover ratio measures as follows under:-

Q: The current ratio measures a. The ability of a company to quickly collect cash from customers. b.…

A: Current ratio = Current assets / Current liabilities

Q: Explain the two methods of inventory tracking: inventory turnover ratio and number of days' sales in…

A:

Q: How to calculate the gross profit for merchandise business? A. Total Sales minus all the operating…

A: The Gross profit is the excess of revenue over the cost of goods sold. It is the amount available…

Q: profit margin, and inventory turnover of the company. Explain what each calculated ratio tells you…

A: Financial ratios are quantitative measurements that are used to evaluate and examine several facets…

Q: How do you calculate accounts receivable turnover? Select an answer. Take the beginning A/R balance,…

A: The accounts receivables turnover ratio is a sub-category of activity ratios, which indicates the…

Q: The Effect of Accounting Methods on Financial Statements: Q: 1a) Explain how two identical companies…

A: The objective of the first part of the question is to understand how two identical companies using…

Q: If a company was able to reduce its inventory level while keeping other things constant, we will see…

A: The ability of an individual, organization, or financial instrument to satisfy its short-term…

Q: Which of the following assumptions is assumed in the percent of sales forecasting method?     All…

A: The percentage of sales forecasting method is a financial forecasting technique that uses historical…

Q: Compared to using the FIFO method to account for inventory, during periods of risingprices, a…

A: USING OF LIFO METHOD

Q: Explain the way sales returns reflect financial statements

A: When a company makes sales, it records the sales in its books of accounts as per the accounting…

Q: Inventory Turnover Ratio shows the speed at which the Sales will be converted into cash. Select one:…

A: The ratio analysis helps to analyse the financial statements of the business.

Q: In constructing a pro forma balance sheet a manager can estimate the accounts receivable because:…

A: The correct option is:c) If the firm maintains similar credit standards, it can use the historical…

Q: If a company shows a profit on its Income Statement, how will this affect (a) the Balance Sheet and…

A: Explanation - There are three statements of the organization which show different accounting…

Q: In calculating inventory turnover, why is cost of goods sold used as the numerator? As the inventory…

A: Inventory turnover ratio:Inventory turnover ratio is used to determine the number of times inventory…

Q: a. What do the accounting policies say in the annual report (footnotes) regarding the cost of…

A: Accounting policies are the policies and standards for the presentation of the financial transaction…

Q: multiple choice: Which of the following statements is TRUE? A. The inventory turnover ratio shows…

A: Ratio Analysis provides insights into the performance of the company based on various parameters.

Q: Which of the following assumptions is embodied in the AFN equation? a. All balance sheet accounts…

A: AFN equation related to the additional fund needed , It is assumed that an increase in sales will…

Q: 18. McBride plc is a company which uses a variety of component parts in its manufacturing…

A: Capital employed: It is the total amount of equity invested in the business. It is the difference…

Q: How do retail companies correctly match expenses with revenue for the period to get an accurate net…

A: The matching principle in accounting is a fundamental principle that requires companies to report an…

Q: Which of the following ratios would a company want to see decrease over time? ROA Days Sales…

A: The statistical assessment of a company's financial success is done through ratio analysis. It…

Q: which of the following ratios would a supplier most likely monitor to assess the ability of a…

A: Ratio analysis is a method to know the liquidity, profitability and operational efficiency of the…

Q: One of the purposes of the statement of cash flows is to ________. A to calculate inventory…

A: Statement of Cash flow : It is one of the financial statements of the business and is prepared for…

Q: Gross Margin of a Merchandise Business will be calculated by using which of the following formula?…

A: Introduction: Income statement: All revenues and expenses are shown in income statement. It tells…

Q: ULTIPLE CHOICE. Answer the following: 1.It show how efficient the business is as to its purchase or…

A: Ratios are very important in the comparing the performance of company with other similar companies…

Q: which of the following is FALSE regarding a firm's financial statements? Inventory is part of…

A: Financial statements -are the final reports prepared by   management staff of a company to present…

Q: What do you think will happen to the financial performance of the company if at the end of the…

A: Having a lot of inventory in your warehouses usually signifies that your firm is struggling to…

Q: The accounts receivable turnover and inventory turnover are used to analyze O long-term solvency. O…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: Explain the purpose of the inventory turnover ratio? Is it possible for a firm to have a high…

A: In finance we make use of various financial ratios to determine the financial health of a company.…

Q: pared, inflation should be taken into consideration c. Return on total assets (ROA) is sometimes…

A: Ratio analysis is an important part in decision making because it help us to analyse the financial…

Q: Johnson would like to know the inventory turnover ratio. You may tell Johnson to a. Divide cost of…

A: Inventory turnover ratio provide the number of times inventory comes and is sold in a year.

Q: How can accounting keep up with the rising sales return rates, especially when it comes to inventory…

A: Management of inventories: Inventory management may be characterized as a system for measuring and…

Q: What does a low ratio in Creditors Turnover Ratio indicate? a. Company collects the money fast from…

A: Ratio analysis means where different ratio of various years of years companies has been compared and…

Q: A measures how successfully a company buys and sells merchandise at a profit. Gross Profit Margin B…

A: Profitability ratios are financial metrics used to assess a business's ability to generate profit…

Q: your answers onthe space provided before each number. 1. Profitability ratios measure the ability of…

A: Accounting ratios refers to those ratios which compare the line items of the financial statements…

Q: How does inventory turnover provide information about a company’s short-term liquidity?

A:

Q: Inventory Turnover Ratio shows the speed at which the inventory will be converted into sales. Select…

A: Introduction: Inventory turnover ratio is one of the financial ratios which is computed by any…