Using the Following Balance Sheet Information,find the Firm's Acid-Test Ratio

question 82

Multiple Choice

Using the following balance sheet information,find the firm's acid-test ratio.
$\begin{array}{|l|r|}\hline \text { Cash and marketable securities } & \$ 20 \text { million } \\\hline \text { Accounts receivable } & \$ 10 \text { million } \\\hline \text { Inventory } & \$ 30 \text { million } \\\hline \text { Current liabilities } & \$ 30 \text { million } \\\hline\end{array}$

• A)0.60
• B)1.00
• C)1.40
• D)2.00

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Definitions:

Direct Regulation

Governmental control directly imposed on specific activities, sectors, or behaviors to enforce compliance with laws and standards.

Technology Forcing

A policy or regulation that requires the development of new technology to meet a specific standard.

Marketable Discharge Permits

Tradable permits allowing the holder to emit a certain amount of pollutants, aimed at reducing the overall impact on the environment.

Carbon Emissions

The release of carbon dioxide into the atmosphere, mainly from burning fossil fuels for energy, which contributes to global warming and climate change.