Keswick Industries Has the Following Current Assets and Current Liabilities

question 102

Multiple Choice

Keswick Industries has the following current assets and current liabilities on the company's balance sheet: Cash $17,000; Accounts Receivable $8,200; Inventory $54,000; Prepaid Rent $3,000; Accounts Payable $23,000; Long-Term Notes Payable $20,000; and Unearned Revenue $5,500. The company's acid-test ratio would be

• A) 1.12:1
• B) 0.38:1
• C) 0.88:1
• D) 1.07:1

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