Dennisport Corporation Has an Acid-Test Ratio of 2

question 145

Multiple Choice

Dennisport Corporation has an acid-test ratio of 2.5.It has current liabilities of $40,000 and noncurrent assets of $70,000.The corporation's current assets consist of cash,marketable securities,accounts receivable,prepaid expenses,and inventory; it has no short-term notes receivable.If Dennisport's current ratio is 3.1,its inventory and prepaid expenses must be:

• A) $12,400
• B) $24,000
• C) $30,000
• D) $40,000

---

Definitions:

Transverse Colon

A part of the large intestine that crosses the abdomen horizontally from right to left, involved in the absorption of water and salts.

Vertebrate Digestive Tract

The system of organs within vertebrates that ingests, digests, and absorbs nutrients, and expels waste, beginning with the mouth and ending with the anus.

Surface Area

The total area that the surface of an object occupies, which is significant in various physical and biological processes due to its impact on rates of reaction and exchange.

Structural Adaptations

Physical features of an organism that enable it to survive and reproduce in its environment.