A Firm Has $10 Million in Cash,$4

question 13

Multiple Choice

A firm has $10 million in cash,$4.5 million in accounts receivable,and inventory of $8 million.The firm's accounts payable is $6.2 million and the firm has no short-term debt.What is the firm's current ratio?

• A)3.63
• B)1.05
• C)5.38
• D)2.90
• E)2.34

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Definitions:

Placebo

A substance with no therapeutic effect, often used as a control in testing new drugs to assess the psychological impact of receiving treatment.

Experimenter Bias

A type of bias that occurs when the experimenter's expectations influence the outcome of a research study.

Statistically Significant

Statistically significant refers to a result that is unlikely to have occurred by chance alone, according to a predetermined threshold of probability, indicating a likely genuine effect.

Double-blind Study

A double-blind study is a research design in which neither the participants nor the experimenters know who is receiving a particular treatment, to eliminate bias.