A Company Has $8,000 in Cash, $9,250 in Accounts Receivable

question 113

Multiple Choice

A company has $8,000 in cash, $9,250 in accounts receivable, and $19,500 in inventory. If current liabilities are $14,350, then the quick ratio would be

• A) 2.6 to 1
• B) 2.0 to 1
• C) 1.2 to 1
• D) 5.0 to 1

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Definitions:

Business Organization

An entity formed for the purpose of carrying out commercial enterprise. Such organizations come in different forms including partnerships, corporations, and sole proprietorships.

Good Cause

A legally sufficient reason or justification for certain actions, decisions, or deviations from standard norms.

Terminate

To bring something to an end or conclusion, often referring to the cessation of contractual agreements or employment.

Specified Sales Quotas

Set amounts of sales that a salesperson or team is aimed to achieve within a certain time frame.