18-76 for a DI in the U

question 92

Multiple Choice

18-76 For a DI in the U.S with $200 in assets and $180 in deposits,a liquid assets ratio of 15 percent

• A)would require $27.00 in cash and liquid government securities.
• B)would require $27.00 in liquid government securities.
• C)would require $30.00 in cash and liquid government securities.
• D)would require $30.00 in liquid government securities.
• E)None of the above.

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Definitions:

Accounts Receivable

Accounts receivable represent the money owed to a company by its customers for goods or services delivered but not yet paid for.

Merchandise

Goods that are purchased for resale at a profit; the main product that a retailer sells.

Sales on Account

Transactions where goods are sold and payment is deferred to a future date; this is typically tracked through accounts receivable.

Beginning Inventory

The value of a company's inventory at the start of an accounting period, before any purchases or sales have occurred.