A Company Has $8,000 in Cash, $9,250 in Accounts Receivable

question 146

Multiple Choice

A company has $8,000 in cash, $9,250 in accounts receivable, and $19,500 in inventory. If current liabilities are $14,350, then the quick ratio will be

• A)5.0.
• B)2.6.
• C)2.0.
• D)1.2.

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Definitions:

Stirrup

A light frame or ring that holds the foot of a rider, attached to the saddle in horseback riding.

Cochlea

A spiral-shaped cavity of the inner ear that plays a key role in the sense of hearing.

Retina

The light-sensitive layer of tissue at the back of the inner eye, which converts light images into electrical signals sent to the brain.

Pinna

The visible part of the ear that is outside the head, responsible for collecting sound waves and directing them into the ear canal.