Use the Information Below for Privett Company to Answer the Questions

question 190

Multiple Choice

Use the information below for Privett Company to answer the questions that follow.
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$$\begin{array}{l}\text { Privett Company }\\\begin{array} { l r } \text { Accounts payable } & \$ 30,000 \\\text { Accounts receivable } & 35,000 \\\text { Accrued liabilities } & 7,000 \\\text { Cash } & 25,000 \\\text { Intangible assets } & 40,000 \\\text { Inventory } & 72,000 \\\text { Long-term investments } & 100,000 \\\text { Long-term liabilities } & 75,000 \\\text { Marketable securities } & 36,000 \\\text { Notes payable (short-term) } & 20,000 \\\text { Property, plant, and equipment } & 400,000 \\\text { Prepaid expenses } & 2,000\end{array}\end{array}$$
-Based on the data for Privett Company, what is the quick ratio, rounded to one decimal point?

• A) 1.7
• B) 2.9
• C) 1.1
• D) 1.0

Understand how to apply fixed and variable costs to the work in process inventory.

Analyze the financial implications of closing standard cost variances.

Grasp the concept of how transactions affect the Cash and Work in Process inventory accounts in a standard cost accounting system.

Understand the fundamental concepts of a standard cost system.

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Definitions:

Bicuspid

Refer to a valve in the heart, known as the mitral valve or bicuspid valve, which has two cusps or flaps that control the flow of blood between the left atrium and left ventricle.

Submaximal Contractions

Muscle contractions that are performed at less than maximum capacity, often used in exercise and physical therapy to build strength without overexertion.

Circulatory System

The system that facilitates the movement of blood and lymph throughout the body, involving the heart, blood vessels, and lymphatic system.

Nervous System

The complex network of nerves and cells that carry messages to and from the brain and spinal cord to various parts of the body.