A Company Has the Following Account Balances A) 93
B) 1

question 140

Multiple Choice

A company has the following account balances.What is the acid-test ratio? (Please round to two decimal places.) $\begin{array}{|l|r|}\hline\text { Cash } & \$ 50,000 \\\hline \text { Short-terminvestments } & 85,000 \\\hline \text { Net current receivables } & 120,000 \\\hline \text { Inventory } & 145,000 \\\hline \text { Total current liabilities } & 275,000 \\\hline\end{array}$

• A) .93
• B) 1.45
• C) .64
• D) 1.76

---

Definitions:

Cones

Photoreceptor cells in the retina of the eye responsible for color vision and function best in bright light.

Rods

Photoreceptor cells in the retina of the eye that are highly sensitive to light and enable vision in low-light conditions.

Sweet Tastes

The gustatory perception characterized by the presence of sugar or substances with a similar flavor profile.

Sour Tastes

One of the basic tastes, characterized by the sensation of acidity and tanginess, often triggered by hydrogen ions in substances.