A Company Has the Following Account Balances A)93
B)1

question 106

Multiple Choice

A company has the following account balances. What is the acid-test ratio? (Please round to two decimal places.) $$\begin{array} { | l | r | } \hline \text { Cash } & \$ 50,000 \\\hline \text { Short-term investments } & 85,000 \\\hline \text { Net current receivables } & 120,000 \\\hline \text { Inventory } & 145,000 \\\hline \text { Total current liabilities } & 275,000 \\\hline\end{array}$$

• A).93
• B)1.45
• C).64
• D)1.76

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Definitions:

Marginal Revenue

The additional income obtained from selling one more unit of a product or service.

Marginal Cost

The increment in total pricing necessary for the creation of one more unit of any good or service.

Marginal Revenue

The supplementary earnings obtained by selling an extra unit of a good or service.

Marginal Revenue Curve

A graphical representation showing the additional revenue that is generated by selling one more unit of a good or service.