Total Company Has Current Liabilities in the Amount of $1,250,000

question 213

Multiple Choice

Total Company has current liabilities in the amount of $1,250,000 and an acid test ratio of 3 and a current ratio of 7.What amount of quick assets does Total Company have on the balance sheet?

• A)$8,750,000
• B)$ 416,667
• C)$3,750,000
• D)$1,250,000
• E)$2,500,000

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Definitions:

Pupil

The pupil is the opening in the center of the iris of the eye, through which light enters the eye and is focused on the retina.

Iris

The colored part of the eye surrounding the pupil, responsible for controlling the diameter and size of the pupil.

Lamellated Corpuscle

A specialized nerve ending found in the skin and mucous membranes, responsible for sensing pressure and vibration.

Papillary Layer

The uppermost layer of the dermis, directly underneath the epidermis, rich in capillaries and nerve endings.