Selected Information from the 2011 and 2010 Financial Statements of SCL

question 33

Multiple Choice

Selected information from the 2011 and 2010 financial statements of SCL Corporation is presented below:


Refer to the SCL Corporation information above. SCL's quick (acid test) ratio as December 31, 2011, is

• A) 1.44 to 1.
• B) 1.50 to 1.
• C) 1.67 to 1.
• D) 1.66 to 1.

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Definitions:

Direct Labor Hours

The total number of hours worked by employees who are directly involved in the production process of goods or services.

Decentralized Operations

A business structure where decision-making is distributed among various levels or locations rather than concentrated at a single point.

Responsibility Accounting

A system of accounting that collects, summarizes, and reports financial information relating to the responsibilities of individual managers.

Controllable Costs

Costs that a manager or company has the power to influence or change directly.