Solve the Formula for the Variable R

question 24

Multiple Choice

Solve the formula for the variable r . Then substitute numbers i = 56 , p = 100, and t = 7 to find the variable's value.

• A) r = 37
• B) r = - 51
• C) r = 0.08
• D) r = 163
• E) r = 0.56

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Definitions:

Acid Test Ratio

Used to determine the amount of assets that can be quickly turned into cash to pay current liabilities; acid test ratio equals total of cash plus receivables divided by total current liabilities.

Balance Sheet

A summary report detailing a company's assets, debts, and equity held by shareholders at a particular moment.

Income Statement

The financial statement that shows the revenues, the expenses, and the net income for a certain period of time.

Net Income to Net Sales

A financial ratio measuring a company's profitability by comparing net income to net sales.