MFT for MBA 2024 Exam Set Questions With 100% Revised Correct Answers >> Passed!!

MFT for MBA 2024 Exam Set Questions With 100% Revised Correct Answers >> Passed!! Acid Test Ratio - Answer -The ratio of current assets And current liabilities also called quick ratio. The ratio equals the sum of a company's cash, short term investments, and accounts receivable divided by its current liabilities. This ratio shows how well of business is able to cover it short term obligations. A quick ratio of one means - Answer -The most liquid assets of a business or equal to its total deaths in the business will just manage to repay all his debts by using its cash, marketable securities, and accounts receivable. A quick ratio of more than one means - Answer -Indicates that the most liquid assets of a business exceed its total debts. Action centered leader ship - Answer -Represents three key balanced activities achieving the task building and maintaining the team and developing the individual Activity-based costing (ABC) - Answer -An accounting system that recognizes a business firms relationship between costs, activities, and products, and through this relationship assigns indirect costs to products less arbitrarily than traditional methods Actual Cash Value - Answer -replacement cost - depreciation A quick ratio of less than one means - Answer -Indicates that a business would not be able to repay all its debts by using its most liquid assets Economic Entity - Answer -the recorded activities of a business entity should be kept separate from the recorded activities of its owner(s) and any other business entities. Going Concern Assumption - Answer -financial statements are prepared with the expectation that a business will remain in operation indefinitely Monetary Unit Assumption - Answer -requires that only those things that can be expressed in money are included in the accounting records Periodicity Assumption - Answer -an organization can report its financial results within certain designated periods of time. Historical Cost Principle - Answer -An accounting principle that states that companies should record assets at their cost.