A Firm's Current Liabilities Amount to $30,000

question 90

Multiple Choice

A firm's current liabilities amount to $30,000.It does not have any marketable securities and receivables amount to $20,000.Calculate the acid-test ratio of the firm if it has $40,000 cash in hand.

• A) 2.0
• B) 0.5
• C) 1.0
• D) 1.67
• E) 1.5

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Definitions:

Intercalated Discs

Specialized junctions between cardiac muscle cells that facilitate the synchronized contraction of the heart.

Excitation-Contraction Coupling

The physiological process of converting an electrical stimulus to a mechanical response, essential for muscle contraction.

Action Potential

A rapid and temporary electrical charge that travels along the membrane of a neuron, initiating the transmission of a nerve impulse.

Sarcolemma

The thin, plasmalemma (plasma membrane) surrounding a muscle fiber, crucial for transmitting signals and coordinating contractions.