Dartmouth Company Has a Quick Ratio of 2

question 85

Multiple Choice

Dartmouth Company has a quick ratio of 2.5 to 1.It has current liabilities of $40,000 and noncurrent assets of $70,000.If Dartmouth's current ratio is 3.1 to 1, its inventory and prepaid expenses must be:

• A) $12,400.
• B) $24,000.
• C) $30,000.
• D) $40,000.

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Definitions:

Sliding Trailer Bogie

A component of a trailer that allows the bogie (wheel assembly) to slide along the trailer's length for weight distribution and compliance with axle weight regulations.

Locking Pins

Components used to secure two or more parts together, preventing movement or separation.

Mechanical

Pertaining to machinery or the working parts of a machine, often involving physical movements and forces.

AWG Wiring

Wiring that is sized according to the American Wire Gauge standard, which determines the thickness of the wire based on a numerical scale.