ABC Corporation Had Total Quick Assets $5,888,000,current Assets $11,700,000 and Current

question 173

Multiple Choice

ABC Corporation had total quick assets $5,888,000,current assets $11,700,000 and current liabilities $8,000,000.Its acid-test ratio equals:

• A)0.50
• B)0.68
• C)0.74
• D)1.50
• E)2.20

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Definitions:

External Company

A company that is outside the group of companies to which a particular company belongs, often considered in the context of external audits or partnerships.

Payroll Checks

Checks issued by an employer to pay employees for their services, reflecting gross pay, deductions, and net pay.

Net Pay

The total income of an employee following the subtraction of all deductions, including taxes and retirement fund contributions.

Gross Earnings

The total amount of money earned by an individual or a company before any deductions such as taxes, benefits, or other expenses.