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Q=(A-I)/(L)
The formula gives the quick assets ratio
Q in terms of a company's current assets,
A; inventories,
I; and current liabilities,
L. Which of the following equations correctly gives the inventories in terms of the quick assets ratio, the current assets, and the current liabilities?
Choose 1 answer:
(A)
I=QL-A
(B)
I=A-QL
(c)
I=L(Q-A)
(D)
I=L(A-Q)

$Q=\frac{A-I}{L}$ $\newline$ The formula gives the quick assets ratio $Q$ in terms of a company's current assets, $A$ ; inventories, $I$ ; and current liabilities, $L$ . Which of the following equations correctly gives the inventories in terms of the quick assets ratio, the current assets, and the current liabilities? $\newline$ Choose $1$ answer: $\newline$ (A) $I=Q L-A$ $\newline$ (B) $I=A-Q L$ $\newline$ (C) $I=L(Q-A)$ $\newline$ (D) $I=L(A-Q)$

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Write exponential functions: word problems

Full solution

Q.

Q=\frac{A-I}{L}

\newline

The formula gives the quick assets ratio

Q

in terms of a company's current assets,

A

; inventories,

I

; and current liabilities,

L

. Which of the following equations correctly gives the inventories in terms of the quick assets ratio, the current assets, and the current liabilities?

\newline

Choose

1

answer:

\newline

(A)

I=Q L-A

\newline

(B)

I=A-Q L

\newline

(C)

I=L(Q-A)

\newline

(D)

I=L(A-Q)

Start with given formula: First, let's start with the given formula for the quick assets ratio: $\newline$ $Q = (A - I) / L$ $\newline$ We need to solve for $I$ , which represents inventories.
Isolate $I$ by multiplying: To isolate $I$ , we first multiply both sides of the equation by $L$ to get rid of the denominator: $Q \times L = A - I$
Get $I$ on one side: Next, we want to get $I$ on one side of the equation by itself. To do this, we can add $I$ to both sides and subtract $Q \times L$ from both sides: $\newline$ $I + Q \times L = A$ $\newline$ $I = A - Q \times L$
Express $I$ in terms: Now we have the inventories, $I$ , expressed in terms of the quick assets ratio, $Q$ , the current assets, $A$ , and the current liabilities, $L$ : $I = A - Q \times L$ This matches option (B) from the given choices.

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