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:

Cure the Defect

The process of correcting or fixing a flaw or error in a legal document or procedure.

Confirmed Letter of Credit

A letter of credit that has an additional guarantee by a second bank, ensuring payment under the letter of credit if the issuing bank fails to do so.

Seller's Bank

A bank appointed by a seller, often in trade transactions, to handle the documentation and receipt of payment from the buyer.

Liability

A company's or individual's legal responsibility for their actions or the state of being legally obligated to settle a debt.