WPM,IncHas Current Assets of $8,000,000,current Liabilities of $4,000,000,inventory of $1,320,000,and

question 69

Multiple Choice

WPM,Inc.has current assets of $8,000,000,current liabilities of $4,000,000,inventory of $1,320,000,and sales of $12,000,000.What is the acid test ratio?

• A) 2.0
• B) 1.67
• C) 0.22
• D) 0.1

---

Definitions:

Alcohol

A chemical compound, specifically ethanol, which is found in drinks like beer, wine, and spirits, and can alter consciousness and impair cognitive and motor functions.

Cirrhosis

A chronic liver disease marked by degeneration of cells, inflammation, and fibrous thickening of tissue, often caused by alcoholism or hepatitis.

Blackouts

Episodes of memory loss for events that occurred while a person was intoxicated or during certain medical conditions.

Stimulant

A substance that raises levels of physiological or nervous activity in the body, commonly used to enhance alertness, attention, and energy.