A Company Has $23,000 in Cash, $41,000 in Short-Term Investments

question 102

Multiple Choice

A company has $23,000 in cash, $41,000 in short-term investments, $240,000 in net current receivables, and $75,000 in inventory. The total current liabilities of the firm are $298,000. The quick ratio of the company is:

• A) 0.63.
• B) 0.87.
• C) 1.02.
• D) 1.27.

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Definitions:

Codes of Ethics

Written policies or rules that outline expected moral behavior and guide decision-making within an organization.

Sarbanes-Oxley Act

A U.S. federal law established to protect investors by improving the accuracy and reliability of corporate disclosures made pursuant to securities laws, and for other purposes.

Securities Fraud

Deceptive practices in the stock and commodities markets, including misleading investors or manipulating stock prices.

Corporate Fraud

Illegal activities undertaken by individuals or companies for financial gain, often through deceptive practices.