A Company Has $50,000 in Cash, $85,000 in Short-Term Investments

question 20

Multiple Choice

A company has $50,000 in cash, $85,000 in short-term investments, $120,000 in net current receivables, and $145,000 in inventory. The total current liabilities of the firm are $275,000. The acid-test ratio of the company is:

• A)0.93.
• B)0.64.
• C)1.45.
• D)1.76.

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Definitions:

Rupees

The official currency of India, symbolized as INR, and used in financial transactions within the country.