What's the difference between the acid-test ratio and current ratio?

Q: How are the ratios useful?

A: Answer: Ratio analysis is allowing a comparison two firm’s annual financial statement using certain…

Q: Define standard deviation

A: It refers to the variation in the actual observations from the average. Z-Score helps to know how…

Q: Define acid-test ratio.

A: Ratio analysis: The analysis of a company using the financial ratios and comparing its trends and…

Q: How do you calvulate the percentage?

A: Financial statements includes income statement, balance sheet, and cash flow statement. These…

Q: Pe ratio formula?

A: PE(Price-to-earnings) ratio is used to determine the relative valuation for companies having…

Q: How to determine FLEV and Spread and the noncontrolling intrest ratio.

A: Financial Leverage (FLEV): Financial Leverage is a financial ratio that represents the relationship…

Q: How the other ratios affects the ROE?

A: Return on equity is used to measure the company’s ability to utilize their assets to generate…

Q: What is one interpretation of a high P/E ratio?

A: Price to earnings ratio (P/E ratio) states the relationship of the earnings with price of that…

Q: Discuss the difference between the Rsquared and the adjusted R squared

A: R-squared tells you how well your model explains the variation in your data, while adjusted…

Q: How do i find the cm per unit

A: Formula: Contribution margin per unit = Sales price - variable cost per unit. Deduction of variable…

Q: What is the difference between covariance and correlation?

A: Co-variance: A co-variance is nothing but a descriptive measure of linear interaction intensity…

Q: how were the percentages found

A:

Q: What is a one-sample t test? When would it be used?

A: One sample t-test is a statistical test used to compare the mean of a single sample to a predefined…

Q: How does the acid-test ratio differ from the current ratio?How are they similar?

A: Difference: The acid-test ratio and the current ratio are both measures of the short-term debt…

Q: How does Sampling Risk compare to Non-Sampling Risk?

A: Risk:   It is a probability of the financial statements being materially incorrect even though the…

Q: What is the coefficient of variation over the same period?

A: The coefficient of variation (CV) is a statistical measure used to assess the relative variability…

Q: What type of risk is measured by the standard deviation?

A: Standard deviation is the measure of risk that the actual return of an investment will deviate from…

Q: When completing a differential analysis, when are the differences shown as positive amounts? As…

A: In differential analysis , two alternatives are compared by taking first alternative as base and…

Q: What is meant by internal benchmarking in ratio analysis

A: Internal benchmarking is a process in which a company or an organisation looks within its own…

Q: how did you find the margin ratio?

A: A margin ratio is a financial metric that measures the % of profit generated from an entity's…

Q: How is propriety ratio calculated and what is its importance?

A: Formula for calculating propriety ratio:It is calculated by dividing the owner’s equity by total…

Q: How do you know to select the correct incoterm?

A: Meaning of incoterm:Incoterm or Inter Commercial Terms are nothing but set of pre-defined rules and…

Q: Explain the relationship between the conventionaL PW criterion and the B/C ratio?

A: The relationship between the cost of the project and benefits earned from the project is measured by…