Presented Below Is Information Related to Tolbert Company Total Current Liabilities Are $100,000

question 53

Multiple Choice

Presented below is information related to Tolbert Company. $\begin{array}{lr}\text { Current Assets }\\\text { Cash } & \$ 4,000 \\\text { Short-term investments } & 75,000 \\\text { Accounts receivable } & 61,000 \\\text { Inventories } & 110,000 \\\text { Prepaid expenses } & 30,000\\\text { Total current assets }&\$280,000\end{array}$ Total current liabilities are $100,000. What is the acid-test ratio?

• A) 2.8 to 1.
• B) 2.5 to 1.
• C) 1.4 to 1.
• D) 0.8 to 1.

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Definitions:

P Value

A statistical measurement that helps to determine the significance of results obtained in an experiment, indicating whether the observed differences could be due to chance.

Hypothesized Reason

An assumed explanation underlying an observed phenomenon or a prediction in research, subject to testing.

Significance Level

The probability of rejecting the null hypothesis when it is actually true, usually denoted as alpha (α).

Null Hypothesis

The assumption for a statistical test that there is no association between two observed phenomena or no difference among groups.