A Company's Current Assets Are $23,420,its Quick Assets Are $13,890

question 82

Multiple Choice

A company's current assets are $23,420,its quick assets are $13,890 and its current liabilities are $12,220.Its acid-test ratio equals:

• A)0.88.
• B)1.91.
• C)1.14.
• D).52.
• E)1.41.

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Definitions:

Investment Earnings

Income generated from investing capital, including dividends, interest, and capital gains.

Inflation

The rate at which the general level of prices for goods and services is rising, leading to a decrease in the purchasing power of money.

Retirement Income

The funds or revenue that an individual receives after retiring from active employment, often derived from savings, investments, pensions, or social security benefits.

Defined Contribution Plan

A retirement plan in which the employee, employer, or both make contributions on a regular basis, but the benefit received upon retirement depends on the plan's investment performance.