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:

Cost Of Underpricing

The financial loss incurred by selling a product or service below its market value or cost, often to attract customers or gain market share.

High Quality

Pertaining to products or services that meet or exceed customers' expectations, characterized by superior materials, workmanship, performance, and durability.

Low Price

A pricing strategy where goods or services are offered to customers at a price lower than the market average or competitors' prices.

More Elastic

Describes a situation where a product or service's demand changes more significantly in response to a change in price.