A Firm Reports a Current Ratio of 2 and a Quick

question 31

Multiple Choice

A firm reports a current ratio of 2 and a quick ratio of 1.2.The firm has total current assets of $4,000.If the firm reports cost of goods sold at $25,000 for the given year,what is the average age of their inventory?

• A) 12.35 days
• B) 15.63 days
• C) 18.24 days
• D) 23.36 days

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Definitions:

Relative Area

A term that describes the proportion or percentage of a specific area with respect to a larger reference area, often used in analytical techniques.

Multiplicity

In NMR spectroscopy, multiplicity indicates the number of nearby nonequivalent hydrogen atoms influencing a given hydrogen atom's resonance, revealing its splitting pattern.

Relative Ratio

A term used to describe the proportional relationship between quantities or concentrations of substances.

Peak

A term often used in spectroscopy and chromatography to describe the highest point in a graph representing the presence or concentration of a substance.