Chua Company Has Current Liabilities Totaling $1,500,000 and the Following

question 46

Multiple Choice

Chua Company has current liabilities totaling $1,500,000 and the following assets on December 31 of the current year: $\begin{array}{lr}\text { Cash } & \$ 300,000 \\\text { Accounts receivable, net } & 600,000 \\\text { Inventory } & 960,000 \\\text { Prepaid expenses } & 25,000 \\\text { Equipment, net } & 2,200,000 \\ \text { Total assets } & \$ 4,085,000 \\\end{array}$ How much is the company's acid-test ratio on December 31?

• A)0.20
• B)0.60
• C)1.26
• D)1.24

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Definitions:

Social Reform

Efforts aimed at making significant changes in society to improve the well-being of individuals and the community.

Media

Refers to the various channels of communication used to disseminate information to the public, including newspapers, television, radio, and the internet.

Grassroots Momentum

The natural, spontaneous, and often rapid growth of movement or support for an initiative or cause, typically originating from the community level.

Name Recognition

Name recognition pertains to the degree of awareness and familiarity the public or a specific audience has with a name, brand, or identity, influencing perceptions and decisions.