Shown Below Are Selected Data from the Balance Sheet of Bill's

question 102

Multiple Choice

Shown below are selected data from the balance sheet of Bill's Auto Parts, a retail store (dollar amounts are in thousands) :
$$\begin{array} { | l | r | } \hline \text { Cash } & \$ 130 \\\hline \text { Accounts receivable } & \$ 370 \\\hline \text { Inventory } & \$ 400 \\\hline \text { Total assets } & \$ 1,260 \\\hline \text { Current liabilities } & \$ 340 \\\hline \text { Non current liabilities } & \$ 280 \\\hline\end{array}$$
-Refer to the above data. What is the quick ratio?

• A) 5%.
• B) 1.5 to 1.
• C) 20%.
• D) Some other amount.

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Definitions:

Demand Curve

A visual graph demonstrating the relationship between the cost of a product or service and how much of it is sought after during a particular timeframe.

Service

Economic activity where an intangible value is provided, such as healthcare, education, or entertainment, as opposed to producing a tangible product.

Substitute Goods

Products or services that can be used in place of each other. When the price of one falls, the demand for the other falls, and conversely with an increase of price.

Equilibrium Price

Equilibrium Price is the price point at which the quantity of goods supplied equals the quantity of goods demanded in a market.