A Company Has $200 in Cash,$500 in Accounts Receivable,and $700

question 51

Multiple Choice

A company has $200 in cash,$500 in accounts receivable,and $700 in inventory.If current liabilities are $400,then the current ratio would be

• A)1.75 to 1.
• B)3.50 to 1.
• C)3.00 to 1.
• D)2.25 to 1.

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Definitions:

Equilibrium Price

Equilibrium Price is the price at which the quantity of a good or service demanded equals the quantity supplied, resulting in market balance.

Equilibrium Quantity

The quantity of goods or services that is supplied and demanded at the equilibrium price, where demand equals supply.

Non-collusive Oligopolist

A firm in an oligopoly market structure that independently sets prices and output levels without secret agreements with competitors.

Marginal Cost

The increase in cost that comes from making one more unit of a product or service.