A Firm's Long-Term Assets = $100,000, Total Assets = $400,000

question 120

Multiple Choice

A firm's long-term assets = $100,000, total assets = $400,000, inventory = $50,000 and current liabilities = $200,000. What are the firm's current ratio and quick ratio?

• A) Current ratio = 0.5; quick ratio = 1.25
• B) Current ratio = 1.0; quick ratio = 2.0
• C) Current ratio = 1.5; quick ratio = 1.25
• D) Current ratio = 2.5; quick ratio = 2.0

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Definitions:

Information Richness

The depth and breadth of information conveyed and received, often affecting the quality and effectiveness of communication.

Synchronous Communication

Communication that happens in real time, where two or more people exchange information instantly.

Computer-mediated Groups

Teams or groups that interact and communicate primarily through computer systems and internet platforms.

Face-to-face Groups

Face-to-face groups involve direct, in-person interaction among members, allowing for immediate feedback and non-verbal communication.