A Company Has the Following Accounts A)358%
B)3

question 196

Multiple Choice

A company has the following accounts.What is the acid test ratio?
$\begin{array}{lrlr}\text { Cash } & \$ 6,754 & \text { Dividends } & \$ 2,000 \\\text { Accounts receivable } & 13,733 & \text { Consulting fees earned } & 13,718 \\\text { Office supplies } & 2,625 & \text { Rent expense } & 3,673 \\\text { Land } & 37,153 & \text { Salaries expense } & 6,64 \\\text { Office equipment } & 14,535 & \text { Telephone expense } & 560 \\\text { Accounts payable } & 6,463 & \text { Miscellaneous expense } & 280 \\\text { Common stock } & 54,490 & \text { Retained Earnings } & 13.847\end{array}$

• A)3.58%
• B)3.17%
• C)1.80%
• D)4.00%
• E)2.68%

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Definitions:

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