A Firm Has the Following Balance Sheet Information: Total Assets

question 47

Multiple Choice

A firm has the following balance sheet information: total assets = $100,000; current assets = $30,000; inventories = $10,000; cash = $5,000; total liabilities = $30,000; current liabilities = $15,000; notes payable = $2,000. What are the firm's quick and NWC-to-Total-Assets ratios?

• A) 1.00 and .13
• B) 1.33 and .13
• C) 1.00 and .15
• D) 1.33 and .15

---

Definitions:

Contract Clause

A specific provision or section within a contract that stipulates terms, conditions, or obligations.

Judicial Bodies

Courts or other tribunals that are empowered to adjudicate legal disputes and administer justice.

Administrative Agencies

Governmental bodies responsible for implementing, administering, and enforcing laws and regulations in specific areas of public policy.

Enabling Statute

A law that gives a government entity or agency the authority to take certain actions or enforce specific regulations.