A Firm Has Net Working Capital of $3,800 and Current

question 21

Multiple Choice

A firm has net working capital of $3,800 and current assets of $11,700.What is the current ratio?

• A)0.34
• B)0.60
• C)1.48
• D)1.65
• E)2.92

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Definitions:

Quality Control Standards

Guidelines and criteria set to ensure the products meet certain thresholds of quality and reliability before they are delivered to customers.

Flexible Standards

Performance benchmarks that can adjust based on changes in actual conditions, allowing for more accurate budgeting and control.

Materials Price Variance

A measure of the difference between the actual cost of materials and the expected cost at standard prices.

Materials Quantity Variance

The difference between the actual quantity of materials used in production and the standard quantity expected to be used, multiplied by the standard cost per unit.