Cash, Short-Term Investments, and Net Receivables Are the Numerator For \begin{array}{cc}

question 92

Short Answer

Cash, short-term investments, and net receivables are the numerator for $\begin{array}{cc} & \text { Acid-Test Ratio } & \text { Current Ratio } \\\end{array}$
A) $\begin{array}{cc} && \text { Yes } &&&&&& \text { No } \\\end{array}$
B) $\begin{array}{cc} && \text { Yes } && && && \text { Yes } \\\end{array}$
C) $\begin{array}{cc} && \text { No } && && && \text { No } \\\end{array}$
D) $\begin{array}{cc} && \text { No } && && && \text { Yes }\end{array}$

• A)\(\begin{array}{cc} && \text { Yes } &&&&&& \text { No } \\\end{array}\)
• B)\(\begin{array}{cc} && \text { Yes } && && && \text { Yes } \\\end{array}\)
• C)\(\begin{array}{cc} && \text { No } && && && \text { No } \\\end{array}\)
• D)\(\begin{array}{cc} && \text { No } && && && \text { Yes }
• \end{array}\)

---

Definitions:

ATC

Average Total Cost; the sum of all production costs divided by the quantity of output, representing the cost per unit including both fixed and variable costs.

Monopoly Power

The exclusive ability of a company to determine the price and production level of a product or service in the market.

Marginal Revenue

The gain in revenue resulting from the sale of one extra unit of a good or service.

Marginal Cost

The price of making an additional unit of a product or service.