The Following Balance Sheet Information Is Provided for Greene Company

question 94

Multiple Choice

The following balance sheet information is provided for Greene Company for Year 2: $\begin{array}{lr}\text { Assets }\\\text { Cash } & \$ 6,600 \\\text { Accounts receivable } & 12,750 \\\text { Inventory } & 15,300 \\\text { Prepaid expenses } & 2,100 \\\text { Plant and equipment, net of depreciation } & 20,000 \\\text { Land } & \underline{ 13,900 }\\\text { Total assets } &\underline{ \$ 70,650}\\\text { Liabilities and Stockholders' Equity }\\\text { Accounts payable } & \$ 3,090 \\\text { Salaries payable } & 7,730 \\\text { Bonds payable (Due in ten years) } & 14,500 \\\text { Common stock, no par } & 14,000 \\\text { Retained earnings } &\underline{ 31,330} \\\text { Total liabilities and stockholders' equity }& \$ 70,650\end{array}$ What is the company's quick (acid-test) ratio? (Round your answer to 2 decimal places.)

• A) 3.40
• B) 1.37
• C) 0.76
• D) 1.79

---

Definitions:

Revenue

The income generated from normal business operations or other activities, vital for sustaining businesses and financing governments.

Declaration Of Independence

The formal statement written by Thomas Jefferson declaring the freedom of the thirteen American colonies from Great Britain, adopted by the Continental Congress on July 4, 1776.

Central Government

This term refers to the national or federal government of a country, responsible for overseeing the administration of all areas of the nation-state, including policy-making and implementation.

Statements Of Principle

Declarations or assertions that outline fundamental beliefs, values, or stances on particular issues, serving as a foundation for decision-making or actions.