The Fingertips Inc

question 7

Multiple Choice

The Fingertips Inc.had the following financial data for the year ended December 31,2015. What is the cash ratio as of December 31,2015,for Fingertips Inc.?

• A)0.30
• B)0.40
• C)0.53
• D)0.83

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Definitions:

Received Cash

The inflow of cash to a business, recorded on the financial statements when cash is received from customers, loans, or other sources.

Accounts Payable Subsidiary Ledger

A detailed ledger that contains all individual transactions related to accounts payable.

Payments To Creditors

Money paid out by a business to settle debts owed to suppliers or lenders for goods, services, or loans.

Purchases On Account

Transactions where goods are acquired on credit, with payment to be made at a later date.