Irma's Current Ratio Is 2.5.This Means That

question 44

Multiple Choice

Irma's current ratio is 2.5.This means that:

• A)for every dollar of current assets,Irma has $2.50 in current liabilities.
• B)for every dollar of current liabilities,Irma has $2.50 in current assets.
• C)Irma has enough cash to pay her cebts for the next 2.5 years.
• D)Irma can borrow 2.5 times her annual sales.

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Definitions:

Service Requirements

Specifications or criteria that detail the performance and quality levels needed to meet customers' needs or service delivery standards.

Queuing System

A mathematical model used to analyze the behavior of queues formed by items or people awaiting service and to design efficient service mechanisms.

FIFO

An inventory valuation method where the first items produced or acquired are the first ones sold or used, standing for First-In, First-Out.

LIFO

"Last In, First Out," an inventory valuation method where the costs of the newest products are the first to be expensed.