The Crafter Company Had the Following Assets and Liabilities as of December

question 85

Multiple Choice

The Crafter Company had the following assets and liabilities as of December 31, 2012: Determine the quick ratio for the end of the year (rounded to one decimal point) .

• A) 6.7
• B) 13.0
• C) 4.2
• D) 3.5

Evaluate how government deficits affect intergenerational standard of living.

Understanding the significance of opportunity costs and how they impact project evaluation.

Recognizing the importance of accurately estimating project cash flows and the challenges involved.

Differentiating between cash flow and accounting income in capital budgeting decisions.

---

Definitions:

Natural Resources

Natural resources are raw materials that are derived from the environment, such as minerals, forests, water, and fertile land, which can be used for economic gain.

Periodic Inventory System

An inventory system that updates inventory balance and cost of goods sold at the end of an accounting period, not continuously.

Economic Entity Assumption

An accounting principle that states a company and its owner(s) are separate entities for financial reporting purposes.

Expenses

Outflows or other uses of assets or incurrences of liabilities during a period from delivering goods, rendering services, or carrying out other activities.