What Is the Acid-Test Ratio for a Merchant with the Following

question 105

Multiple Choice

What is the acid-test ratio for a merchant with the following account balances? (Round your answer to two decimal places.) $$\begin{array} { | l | l | } \hline \text { Cash } & \$ 21,000 \\\hline \text { Short-term investments } & 44,000 \\\hline \text { Net current receivables } & 54,000 \\\hline \text { Merchandise inventory } & 21,000 \\\hline \text { Total current liabilities } & 275,000 \\\hline\end{array}$$

• A) 0.76
• B) 0.43
• C) 0.60
• D) 0.83

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Definitions:

Limbic System

A sophisticated arrangement of neural circuits and systems within the brain, playing a key role in natural instincts and emotional states, managing primary emotions and desires.

Hypothalamus

A region of the brain that plays a crucial role in many essential functions, including hormone release, regulation of body temperature, and managing hunger and thirst.

Nucleus Accumbens

A region of the brain involved in the reward circuit, associated with pleasure, reinforcement learning, and addiction.

Reward Center

Brain structures, such as the nucleus accumbens, involved in the processing of rewards and pleasures, critical in decision-making and reinforcement learning.