A Corporation Reports the Following Year-End Balance Sheet Data A) 207
B) 0

question 137

Short Answer

A corporation reports the following year-end balance sheet data. The company's acid-test ratio equals: $\begin{array}{lrlr}\text { Cash } & \$ 40,000 & \text { Current liabilities } & \$ 75,000 \\\text { Accounts receivable } & 55,000 & \text { Long-term liabilities } & 35,000 \\\text { Inventory } & 60,000 & \text { Common stock } & 100,000\\\text { Equipment }&145,000&\text { Retained earnings }&90,000\\\text { Total assets }&\$300,000&\text { Total liabilities and equity }&\$300,000\\\end{array}$
A) 2.07
B) 0.37
C) 0.58
D) 1.27
E) 0.63

• A) 2.07
• B) 0.37
• C) 0.58
• D) 1.27
• E) 0.63

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Definitions:

Real Numbers

Real numbers include all the numbers on the number line, encompassing rational and irrational numbers, positive, negative, and zero.

Complex Fraction

A fraction that consists of a fraction within its top or bottom number, or in both.

Simplify

The process of reducing a mathematical expression to its simplest form, by performing operations and combining like terms.

Complex Fraction

A fraction characterized by having a fraction in its numerator, denominator, or both parts.