A Company Had Current Assets of $550,000 and a Current

question 111

Multiple Choice

A company had current assets of $550,000 and a current ratio of 2.0.The current assets consist of Cash of $50,000,Short-term investments of $150,000,Accounts receivable of $50,000,and Inventory of $300,000.Which of the following is closest to the company's quick ratio?

• A)2.0
• B)1.82
• C)0.53
• D)0.91

---

Definitions:

Time Series Data

Data collected and recorded at regular intervals over a period of time, often used for analyzing trends, cycles, and forecasts.

Real GDP

Gross Domestic Product adjusted for inflation, measuring the value of goods and services produced by a country's economy in real terms over a specific period.

Nominal GDP

The market value of all final goods and services produced within a country in a given period, measured in current prices.

Base Year

A specific year against which economic growth is measured, serving as a standard comparison for other years in index calculations and real values.