A Company Has the Following Account Balances

question 70

Multiple Choice

A company has the following account balances. What is the acid-test ratio? (Please round to two decimal places.)

• A).91
• B).94
• C)1.06
• D).70

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Definitions:

Lender

An individual, financial institution, or entity that provides funds to another with the expectation that the funds will be repaid, typically with interest.

Shareholders Wealth

The total value of an individual's or entity's ownership stake in a company, typically measured by stock price and dividends.

Financial Goal

A specific monetary target to save, invest, or spend money within a definite period, guiding financial planning and decision-making.

Corporation

is a legal entity that is separate and distinct from its owners, providing them with limited liability, and it has the ability to enter into contracts, loan and borrow money, sue and be sued, and pay taxes.