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:

Cardiac Muscle

Specialized muscle tissue found only in the heart, characterized by involuntary contractions that pump blood throughout the body.

Neurons

Specialized cells transmitting nerve impulses; the basic working units of the brain and nervous system.

Neuroglia

Neuroglia, also known as glial cells, are non-neuronal cells in the nervous system that provide support, protection, and nourishment to neurons.

Nerve Impulses

Electrical signals transmitted along nerve fibers, used for communication between neurons or between neurons and muscles.