The Following Financial Data Have Been Taken from the Records

question 129

Multiple Choice

The following financial data have been taken from the records of CPZ Enterprises.
$\begin{array}{l|r|}\hline \text { Accounts Receivable } & \$ 200000 \\\hline \text { Accounts Payable } & \$ 80000 \\\hline \text { Bonds Payable, Due in Ten Years } & \$ 300000 \\\hline \text { Cash } & \$ 100000 \\\hline \text { Interest Payable, Due in Three Months } & \$ 10000 \\\hline \text { Inventory } & \$ 440000 \\\hline \text { Land } & \$ 250000 \\\hline \text { Notes Payable, Due in Six Months } & \$ 50000 \\\hline\end{array}$

-What is the company's acid-test (quick) ratio?

• A) 0.68.
• B) 1.68.
• C) 2.14.
• D) 2.31.

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Definitions:

Planning Budget

A financial plan created for a specific period in the future, outlining expected revenues, expenses, and resource allocations.

Wells Serviced

The number of oil or gas wells that have undergone maintenance, repair, or other services by a company.

Revenue Variance

The difference between the actual revenue earned and the expected or budgeted revenue.

Fixed Costs

Expenses that do not change in proportion to the activity of a business, such as rent, salaries, and insurance.