A Company's Current Assets Are $17,980, Its Quick Assets Are

question 59

Multiple Choice

A company's current assets are $17,980, its quick assets are $11,420 and its current liabilities are $12,190. Its acid-test ratio equals:

• A)0.94.
• B)1.07.
• C)1.48.
• D)1.57.
• E)2.40.

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Definitions:

ESOPs

Employee Stock Ownership Plans, which are programs that provide a company's workforce with ownership interest in the company through stocks.

Harvest Stage

The phase in a business or product lifecycle where maximum benefits and profits are extracted, often after the growth phase has plateaued.

Risk Averse

Refers to the preference of individuals or organizations to avoid risk, choosing the option with the least uncertainty.

Small Business Person

An individual who owns and operates a business that is typically defined by its small size in terms of revenue and number of employees.