Your Current Assets Consist of Cash, Accounts Receivable, and Inventory

question 28

Multiple Choice

Your current assets consist of cash, accounts receivable, and inventory. Total current liabilities equal $200,000. The average collection period is 20 days on average daily credit sales of $2,500. The current ratio is 1.3 and the quick ratio is 0.625. What is the balance in the cash account?

• A) $ 75,000
• B) $ 65,000
• C) $135,000
• D) $ 50,000

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Definitions:

Consciousness

The state of being aware of and able to think about one's own existence, sensations, thoughts, surroundings, and experiences.

Neoliberalism

A political-economic philosophy advocating for free markets, deregulation, and reduction in government spending in social services.

Inequality

The state of not being equal, especially in status, rights, and opportunities, manifesting in various societal, economic, and political contexts.

Semiotic Jujitsu

A conceptual strategy that subverts dominant or established signs and symbols, turning them against their original meanings or intentions.