Long-Term Assets Are $5,000, Current Liabilities Are $700, and Long-Term

question 161

Multiple Choice

Long-term assets are $5,000, current liabilities are $700, and long-term liabilities are $3,000. If the current ratio is 3 to 1, then current assets are

• A) $4,300
• B) $2,100
• C) $9,000
• D) $6,900

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Definitions:

Perfect Competition

A market structure characterized by a large number of small firms, homogeneous products, and no barriers to entry or exit, leading to optimal distribution of resources.

Perfect Competition

A market structure characterized by an infinite number of small sellers, identical products, and free market entry and exit.

Grade A Large Eggs

A classification for eggs that are of a specific quality and size, indicating freshness and shell integrity.

Monopolistic Competition

A market structure in which many companies sell products that are similar but not identical.