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Author Question: Companies rely exclusively on publications such as the U.S. Department of State Indexes of Living ... (Read 93 times)

Kthamas

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on: Jul 6, 2018
Companies rely exclusively on publications such as the U.S. Department of State Indexes of Living Costs Abroad to determine allowances for expatriate employees.
 
  Indicate whether this statement is true or false.

Question 2

A company has a current ratio of 2.75 to 1. What should a manager in the company conclude?
 
  A) The company is getting the best possible return on its assets.
  B) The company has too many liabilities.
  C) The company is not getting the best possible return on its assets.
  D) The company is not getting the best possible return on its liabilities.


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matt

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Reply #1 on: Jul 6, 2018
Answer to Question 1

Answer: FALSE

Answer to Question 2

Answer: C
Explanation: A current ratio of 2 to 1 is considered healthy for a typical company. Any value much lower than 2 to 1 may indicate that the company cannot meet its debts. A ratio nearing 3 to 1 suggests that the company is not using its assets efficiently, which is the situation for this company.


Kthamas

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Reply 2 on: Jul 6, 2018
Gracias!

ktidd

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Reply 3 on: Yesterday
Excellent

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