Assume the Following Data: Current Assets = 500; Current Liabilities

question 42

Multiple Choice

Assume the following data: Current assets = 500; Current liabilities = 250; Inventory = 200; Account receivables = 200.Calculate the cash ratio.(Assume that the firm has no marketable securities.)

• A)0.4
• B)2.0
• C)1.5
• D)1.2

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Definitions:

Core Critical Thinking Skills

Essential skills in critical thinking, including analyzing, evaluating, inferring, explaining, and self-regulating abilities.

Others

People or things that are distinct from the subject or category currently being discussed or mentioned.

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The stage of mental development where individuals are capable of making reasoned decisions, understanding abstract concepts, and reflecting on their thoughts and actions.

Black and White

A metaphorical expression used to describe situations that are viewed in terms of clear, stark oppositions or contrasts, without acknowledging grey areas.