Use the Following Information for Questions

question 5

Multiple Choice

Use the following information for questions.
The following data are provided:

Additional information:
Depreciation included in cost of goods sold and operating expenses is $305,000.On May 1, 2011, 15,000 ordinary shares were issued.The preference share are cumulative.The preference dividends were not declared during 2011.
-At December 31, 2011, the acid-test ratio was

• A)775 ÷ 325.
• B)775 ÷ 540.
• C)1,050 ÷ 400.
• D)1,425 ÷ 325.

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Definitions:

Indifference Curves

Graphical representations in microeconomics showing different bundles of goods between which a consumer is indifferent.

Risk-Averse Investors

Individuals or entities preferring to minimize financial risk, often choosing investments with lower potential returns to avoid loss.

Risk-Averse Investors

Investors who prefer to minimize the possibility of loss, typically opting for lower-risk investments.