Lisa Inc.'s Balance Sheet Appears Below

question 62

Multiple Choice

Lisa Inc.'s balance sheet appears below:
The company's sales for the year were $300,000, its cost of goods sold was $220,000, and its net income was $35,000. All sales were on credit. Dividends paid on preferred shares for the year were $5,000.



-Lisa Inc.'s acid-test (quick) ratio at December 31,Year 2,was closest to which of the following?

• A) 0.6 to 1.
• B) 1.1 to 1.
• C) 1.8 to 1.
• D) 2.0 to 1.

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Definitions:

Decision Making

The process of making choices by identifying a decision, gathering information, and assessing alternative resolutions.

Personality Disorder

Mental disorders characterized by enduring maladaptive patterns of behavior, cognition, and inner experience, exhibited across many contexts and deviating from those accepted by the individual's culture.

Cluster A

A category in the DSM used to classify personality disorders characterized by odd or eccentric behaviors, including paranoid, schizoid, and schizotypal personality disorders.

Antisocial Personality Disorder

A mental condition characterized by a long-term pattern of disregard for, or violation of, the rights of others.