Kaplan Has a Current Ratio of 2

question 13

Multiple Choice

Kaplan has a current ratio of 2.5 to 1 and current liabilities of $12 000. If Kaplan has $9000 of inventory what is the quick ratio?

• A) 2.25 to 1
• B) 2.00 to 1
• C) 1.75 to 1
• D) 1.50 to 1

Identify and describe the purpose and types of cost-volume-profit (CVP) charts and graphs.

Calculate break-even points in units and dollars for single and multiple product scenarios.

Understand the concept of sales price per unit, variable cost per unit, and fixed cost.

Able to compute contribution margin ratio and understand its significance.

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Definitions:

Foreign Exchange Market

A global marketplace for exchanging national currencies against one another.

Canadian Dollars

In Canada, the national currency is indicated by CAD or C$.

Moose Jaw

A city in south-central Saskatchewan, Canada, known for its historical importance and attractions.

Net Present Value

A method used in capital budgeting to evaluate the profitability of an investment or project, by calculating the difference between the present value of cash inflows and the present value of cash outflows.