A Company's Quick Assets Are $147,000 and Its Current Liabilities

question 84

True/False

A company's quick assets are $147,000 and its current liabilities are $143,000. This company's acid-test ratio is 1.03.
Acid-Test Ratio = Quick Assets/Current Liabilities
Acid-Test Ratio = $147,000/$143,000 = 1.03

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Definitions:

Reporting Relationships

The hierarchical structure within an organization that defines who reports to whom.

Communication Linkages

The channels and methods through which information is exchanged within an organization or between organizations.

Bureaucratic Organization

A type of organizational structure characterized by strict procedures, hierarchical relationships, and detailed rules and guidelines to ensure consistency and control.

Rational Structure

An organizational design that emphasizes a well-defined hierarchy, clear roles, and formal procedures and guidelines.