Ben Company Has the Following Data for the Year Just

question 37

Multiple Choice

Ben Company has the following data for the year just ended:
$\begin{array}{|l|r|}\hline \text { Cash } & \$ 42,000 \\\hline \text { Accounts Receivable } & \$ 28,000 \\\hline \text { Inventory } & \$ 35,000 \\\hline \text { Current Ratio } & 2.4 \text { to } 1 \\\hline \text { Acid-Test Ratio } & 1.6 \text { to } 1 \\\hline\end{array}$
What were Ben Company's current liabilities?

• A) $35,000.
• B) $43,750.
• C) $50,400.
• D) $63,000.

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Definitions:

Cognitive limitations

The restrictions inherent in an individual's cognitive capacity, affecting their ability to process and understand information.

Information-processing

Refers to the series of actions or steps taken in order to receive, perceive, and interpret information from the environment.

Classical decision theory

A framework that assumes decision-makers are fully rational and seek to maximize utility or profit when making choices.

Enterprise risk management

A comprehensive framework for identifying, assessing, managing, and monitoring the risks that an organization faces to maximize value.