Westbury Pty Ltd Has a Current Ratio of 2 to 1

question 58

Multiple Choice

Westbury Pty Ltd has a current ratio of 2 to 1 and current liabilities of $22 000.If Westbury Pty Ltd has $10 000 of inventory,the quick asset ratio is:

• A)1.6:1
• B)2.5:1
• C)1:1
• D)1.2:1

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Definitions:

Ultrasound

A medical imaging technique that uses high-frequency sound waves to visualize internal organs and produce images of the body.

Disintegrate

To break or fall apart into small fragments or components, often rapidly, leaving the original structure irreparably damaged or destroyed.

Xerophthalmia

A medical condition characterized by dry eyes, which can lead to damage to the cornea and conjunctiva.

Conjunctiva

A thin, clear membrane lining the eyelid and covering the white part of the eyeball, responsible for keeping the eye moist.