Presented Below Is Information Available for Marley Company

question 9

Multiple Choice

Presented below is information available for Marley Company. Total current liabilities are $100,000. The acid-test ratio for Marley is:

• A) 2.80 to 1
• B) 2.40 to 1
• C) 1.30 to 1
• D) 0.69 to 1

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Definitions:

Articles of Incorporation

A document that establishes the existence of a corporation in the United States and includes basic information like the corporation's name, type of corporation, and the nature of the business.

State Incorporation Statutes

Laws governing the process by which companies are recognized as legal entities under the state's jurisdiction.

Shareholders

Individuals or entities that own shares in a corporation, giving them partial ownership and possibly the right to vote on corporate matters.

Personally Liable

The state of being legally responsible for something on a personal level, as opposed to through a corporate or collective entity.