The Balance Sheet and Income Statement Shown Below Are for Pettijohn

question 99

Multiple Choice

The balance sheet and income statement shown below are for Pettijohn Inc. Note that the firm has no amortization charges, it does not lease any assets, none of its debt must be retired during the next 5 years, and the notes payable will be rolled over.

-What is the firm's quick ratio?

• A) 0.49
• B) 0.61
• C) 0.73
• D) 0.87
• E) 1.05

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Definitions:

Tid

An abbreviation for "ter in die," a medical term meaning three times a day, usually in the context of prescribing medication.

Bid

An offer made by an individual or entity to buy something.

Prn

An abbreviation for "pro re nata," a Latin phrase meaning "as needed"; often used in prescriptions to indicate that medication should be taken as required.

Tincture

A solution where a solute is dissolved into alcohol, used primarily in medicine or herbalism.