The Current Assets of Global Acorn Are Valued at 25

question 82

Multiple Choice

The current assets of Global Acorn are valued at 25 million dollars and its current liabilities are at 6 million dollars. If its inventory is worth 1 million dollars, what is its quick ratio?

• A) 4
• B) 0.25
• C) 0.14
• D) 3.6

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Definitions:

Price Of X

Refers to the cost that consumers face when purchasing a specific good or service, denoted as "X".

Preferences

In economics, this refers to the subjective tastes and choices of individuals, based on the assumption that consumers prefer more of a good or service than less.

Budget Equation

A financial formula representing the balance between an individual's or entity's income and expenses, often used in personal finance or economic models.

Market Prices

The current price at which an asset or service can be bought or sold in a competitive marketplace.