A Company Had the Following Current Assets and Current Liabilities

question 100

Multiple Choice

A company had the following current assets and current liabilities: $$\begin{array} { l r } \text { Cash } & \$ 5,000 \\\text { FVTOCI securities } & 15,000 \\\text { Accounts receivable } & 75,000 \\\text { Inventory } & 32,500 \\\text { Prepaid insurance } & 2,500 \\\text { Accounts payable } & 18,500 \\\text { Unearned revenue } & 20,000 \\\text { Current portion of long-term debt } & 5,000\end{array}$$ What is their quick ratio closest to?

• A)2.2
• B)2.5
• C)3.0
• D)3.4

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Definitions:

Selective Perception

The process by which individuals focus on certain stimuli while ignoring others, influenced by their background, experiences, and attitudes.

Categorize

The act of arranging or classifying items, individuals, or ideas into specific groups or classes based on shared characteristics.

Stereotyping

The act of ascribing generalized attributes or behaviors to members of a particular group, often based on preconceptions.

Ignoring Information

The deliberate or unconscious avoidance of acknowledging facts, data, or feedback that may be relevant or important.